A study commissioned by Ecclesiastical has found that 72% of high net worth (HNW) collectors in the UK share information about their art and collections on social media, a trend that presents a crucial opportunity for insurance brokers to discuss associated risks with their clients.
The survey, which included 250 UK-based HNW individuals who invest in art and other collectibles, revealed that those with higher incomes, residents of London, and individuals under 45 years of age are more likely to post on social media. By contrast, those aged 45 and above tend to post less.
The prevalent use of social media among these collectors can inadvertently provide criminal elements with critical information, including specific location data, potentially making it easier for them to target these wealthy individuals and their valuable possessions.
Half of the survey respondents admitted to posting photos (51%) and details (48%) of their art and collections on social media platforms. More than one in five (22%) of them also share or tag the locations where their art and collections are housed.
The research also highlights a growing trend towards online purchases among wealthy collectors. About 68% have bought assets online, with 34% making these purchases through online private sales.
While online acquisitions offer convenience, they also come with risks, particularly if not made through reputable dealers or auction houses. Ecclesiastical advises collectors to ensure thorough checks on condition, authenticity, and provenance, similar to those conducted for in-person acquisitions.
Despite these concerns, a significant portion of HNW collectors (71%) expressed confidence in purchasing art and collections online, with 72% anticipating an increase in their online acquisitions over the next 12 months.
“From an old master painting to a modern sculpture, bottle of whisky, or wine collection, as a specialist art and private client insurer, we understand the importance of protecting art, collections, and valuable possessions. Our latest research has found the majority of high net worth collectors are purchasing assets online and are posting about their treasured art and collections on social media, exposing them to online risks. Brokers play an important role in helping high net worth clients understand the risks they face and in ensuring they have the right cover in place should the worst happen,” Ecclesiastical underwriting director for art and private clients Dr James Lindow said.
What are your thoughts on this story? Please feel free to share your comments below.
