Typically, they offer broad general covers which, while suiting the needs of many clients, are necessarily somewhat restricted the coverage they provide in some areas.

As a result, a number of specialist players have recently been working to identify niche areas where tailored products better suit the needs of the insured and the fine art market is one such area.

For the last 10-15 years, the market has been serviced either through Axa or Globen Försäkringar AB, a Lloyd's agent or through general property covers offered by the major providers.

Wealthier generation
But over a similar period, the rise of new, wealthier generation, with a renewed interest in fine art, not only as an investment but also as a fashion statement, together with Sweden's proximity to Russia and its important collections of old masters has made Stockholm, and Sweden, an attractive location for fine art dealers servicing the needs of both domestic and external buyers.

"There is the rise of new, wealthier generation, with a renewed interest in fine art, not only as an investment but also as a fashion statement."

At the same time, corporates, have been investing in their own collections and together this has created a vibrant market for fine art, with well-known contemporary galleries in Stockholm, and throughout Sweden, which is likely to be further enhanced by new demand as emerging economies such as China seek to recapture parts of their artistic history.

Traditional programme
In Sweden fine art coverage has traditionally been offered as part of a larger property programme, which while offering basic cover at apparently attractive terms, has been restricted in what coverholders have been offered. Claims management and service has been restricted by the limited availability of specialist loss adjusters with knowledge and understanding of the fine art market.

However, in recent years products and services have been developing to provide the Swedish market with specialist offerings, which better meet the needs for fine art clients. Not only do these policies address the drawbacks of general property coverage, they also provide the insured with cover which follows the piece of art, providing wall to wall cover if it is moved on loan, for example, from a corporate headquarters to a museum.

Network links
In addition, some insurers have extensive networks of art experts who can not only provide valuation advice to clients, so that cover remains at the right level, but can also contribute to the adjustment process so expediting the settlement of claims.

There has been an increasing interest in the market and this is expected to continue and, in line with that, for the domestic underwriting expertise in this class to continue to develop, to the benefit of all involved in the market. The development of the market underlines the benefits that well tailored, specialist products are able to offer clients and their brokers.

Anne-Sofia Hedin is general manager of Markel International, Sweden