Art has often been seen as a mirror of society, reflecting the identity, values, and history of the culture from which it emerges. The art market more widely has also been praised as an early mover in the discussion and promotion of diversity, equality and inclusion (DEI).
In recent years, museums and art fairs have placed a greater focus on displaying art from a variety of cultures and underrepresented individuals, reflecting the increasing global mobility of the world we live in.
This was exemplified at this year’s Venice Biennale art exhibition, titled Stranieri Ovunque – Foreigners Everywhere. This year marked the 60th edition, but it was the first time in its history that someone from Latin America was appointed as curator. The exhibition has been praised for the representation of artwork on display – which has never been so broad – and its celebration of diversity and difference.
Broadening perspectives
As the art market continues to evolve and widen its representation, it is becoming more pertinent for fine art and specie underwriters to take a broader approach to the industry.
Insurers looking to remain at the top of their game in this business line need to prioritise DEI efforts in their day-to-day work by staying curious and consistently broadening their knowledge of different cultures and backgrounds.
That said, staying ahead of changes in the art market is not an easy task. Trends in the industry evolve quickly and new talent is constantly emerging.
For instance, around 14 percent of the top tier artists who enjoy institutional and commercial recognition today were considered emerging artists in 2000. In the last 10 years, they have quickly gained success, experiencing on average 1,761 percent career growth.
There is a big opportunity for insurers to engage with this talent early on in order to gain a competitive edge. But to do this successfully, underwriters must be open-minded and have a keen eye on the market.
Navigating data challenges
The biggest issue underwriters are facing is the difficulty in acquiring information and data necessary for determining the value of a piece of art, such as the development of an artist’s career or the price a piece of art has sold for.
Historically, auction transaction records have been used as the gold standard for attaining this information; however, this data represents only a small fraction of the world’s artists. In fact, auction records since 2013 cover just 7.2 percent of all artists born after 1800, highlighting a significant gap in representation.
In practical terms, as underwriters attempt to broaden their knowledge of a wider market of emerging and established artists, there is every likelihood that they will face a gap when they try to access relevant auction records.
Take, for example, Anna Maria Maiolino and Nil Yalter, who won the Golden Lions for lifetime achievement at Biennale Arte 2024. Despite this being one of the most prestigious accolades an artist can be awarded, there are only six auction records available on Maiolino’s work and no records at all for Yalter’s, as per the end of September 2024.
This obviously makes it difficult for any insurer relying on auction price results to cover the risk of damage, loss or theft to these artists’ work as it’s almost impossible to determine a nominal figure for the value of these pieces.
Leveraging technology to find success
This is pushing underwriters to get creative and rethink their approach to find alternative sources of information on the art market, such as AI tools to provide a wealth of data spanning an extensive history of various artists’ careers.
This includes data much broader than just the artist’s auction sale price, for example, valuable insights on dealer prices as well as a vast record of exhibitions that their artwork has been displayed in.
Having access to this information allows much more precise assessments of the value of art from many more artists, providing clients with more accurate coverage and supporting much greater diversity in the industry.
As technology continues to advance, particularly with the proliferation of AI products, more and more solutions will become available to allow the insurance industry to navigate these challenges with ease.
As such, there is no excuse for complacency when it comes to DEI in the art market. We have a responsibility to rethink our practices and ensure that the diversity of the art world is represented in our work.
Han Byul Jung is a senior fine art and specie underwriter at Liberty Specialty Markets
