Interview with Muys Snijders and Kyle McGrath
PATRON (P): You commissioned the Collectors Lounge at Design Miami for the second year in the row, will you tell me more the idea behind your commission?
AIG: Through our partnership with Design Miami and the commission of the Collector’s Lounge, AIG Private Client Group was able to realize our goal of championing the creative vision of artists and designers. We have expanded our team’s mission to include the direct support of artists, designers, and their communities, going beyond our goal to preserve the integrity of art objects but also to help facilitate their creation. This year, we commissioned Bradley L Bowers, B&B Italia, and Doo Architecture to collectively design the stunning Collector’s Lounge, which served as a gathering point for discussion and connection throughout Miami Art Week. This allowed us to introduce our clients and industry partners to new art and design they may not have otherwise been exposed to, while simultaneously contributed to the ever-evolving ecosystem that is the art and design community. In an effort to actively foster thought leadership across this multi-faceted community, we hosted a panel, as part of Design Miami’s Talk Series, with the designers of the Collector’s Lounge, moderated by our own Muys Snijders, Head of Art Collection Management. In addition, we hosted private events with the designers for our clients and industry partners at various intervals throughout the week when the fair was closed to the public, allowing for more intimate discussion and exploration.
P: Please tell me about AIG Private Client Group’s Art Collections team.
MS: AIG Private Client Group is built around the properties and passions of our clients. To provide unrivaled risk management and loss prevention services, we have assembled an esteemed AIG Art Team with over 75 years of world-class academic and hands-on experience – from advanced degrees to roles with top universities and museums. Our superior team helps preserve value through vulnerability assessments, coverage reviews, emergency planning, and referral services.
P: I’ve just attended Art Basel Miami and bought several new pieces. Why should I choose AIG Private Client Group to insure my art collection separately from my homeowner’s insurance?
KM: There are a variety of reasons a collector should pursue a dedicated Collections insurance policy. For one, the coverage wording is specifically geared toward a fine art or collectibles loss and will often cover up to an additional 50% of the scheduled value to account for market fluctuation. In addition, at the time of a loss, the policy will cover not only the cost to repair or restore the work but also any ensuing depreciation in value. A collections policy will also likely have more flexibility when it comes to deductible options (often times no deductible for non-CAT exposures) and provide worldwide coverage when objects are off-premises or in transit. Lastly, a dedicated fine art insurance carrier will have an experienced claims team with strong industry relationships to help navigate the claims process as best possible.
P: What should I provide to begin insuring my collection? Does AIG Private Client Group’s Collection team assist with assembling the provenance of each piece or do I need to provide this?
KM: In order to consider a new client, fine art insurance carriers will likely need a schedule of values, inclusive of proof of these values, which can either be in the form of recent invoices or retail replacement value appraisals conducted by an independent, third party USPAP-compliant appraiser. AIG Private Client Group does not assist with establishing provenance, although we can certainly provide industry referrals to help with all aspects of collection management.
P: If I already have a fine art insurance policy in place, how quickly may I add new acquisitions, and may I add coverage before the works ship to me?
MS: New acquisitions are protected upon acquisition up to 25% of the class limit if we are notified within 90 days of such acquisition and you pay the increased premium from the time of acquisition.
P: Should I have my collection appraised first or simply provide the certificates of sale?
KM: This depends on how recently the objects were purchased and whether or not that medium or artist has recently seen an increase in value. This is where AIG Private Client Group’s Art Collection Management team, and / or the client’s curator (if they have one on staff) can help assess what items might need updated valuations and those that can be accepted as-is. Generally speaking, insurance carrier will require updated appraisals every 3-5 years, depending on the value of the items in question.
P: We’ve been asked to loan works to exhibitions. Does AIG Private Client Group’s coverage extend to transit, installation, and exhibition?
MS: Lending your art or collectible for exhibition can be a wonderful experience and opportunity to share your collecting passion. With adequate planning and qualified resources on hand, you can safely lend your valuables with minimal exposure. Accidents can happen even with the most careful planning, so if there is damage or a loss, you need to be able to rely on your insurance coverage to help make you whole again.
KM: Borrowers such as museums and galleries typically offer “wall-to-wall” or “nail-to-nail” insurance, meaning they will provide some level of coverage starting from the time your object is de-installed to when it is re-installed in your home. You will need to decide whose insurance will be in force for the loan’s duration: your personal coverage, the coverage offered by the borrower, or a combination of both.
P: In the event that work(s) in my collection increases in value, do I need to adjust my coverage?
KM: The short answer is yes, to ensure that you are insured to full value, although it does also depend upon the basis of valuation in your fine art insurance policy. Many policies are written on an agreed-value basis, which often includes a percentage increase in coverage that accounts for market fluctuation. This provides collectors with some coverage for appreciation in value over the course of the policy term. That being said, if you know certain items have increased in value or have reason to believe the values have changed, it is always recommended to have them reappraised as that additional 50% of scheduled value might no longer be sufficient to cover the full value.
Alternatively, your policy may be written on a current market Value basis, which would be equivalent to the value of the piece immediately prior to a loss.
Either way, it is critical that collectors have a pulse on the market for the artists that they collect so they know when it may be necessary to reappraise or to consider increasing insurance coverage, based on appreciation.
P: I am looking to sell a work in my collection, does AIG Private Client Group assist with appraisal and sale?
MS: At AIG Private Client Group we always look to help solve our clients queries and art related collection needs. We conduct regular schedule reviews and monitor market changes. Our decades of industry knowledge and expertise combined with our direct access to the markets top experts allow us to advise our clients on all aspects of the management of their collection. From appraiser, conservator, collection database or sale referrals to packing and shipping arrangements, we work tirelessly to help you identify the precise experts needed for the best possible outcomes.
P: I’ve inherited a collection and I know nothing about art. Will AIG Private Client Group help me determine value?
MS: AIG Private Client group will conduct a Collection Assessment to discuss a family’s immediate and long-term collection needs and goals. The Assessment will identify the collection risks and provides tailored recommendations which would include referrals to relevant art appraisers and other industry experts.
P: Do you host seminars? I’d like to learn more.
MS: We enjoy being an integral part of the community we support, sharing our market expertise and learning from others. Through commissions such as the Collectors Lounge at Design Miami, AIG Private Client Group is actively supporting the realization of the creative vision of the designers whilst introducing our clients to new art and design that they may have not otherwise seen. This is the second year and part of many initiatives we are involved in as we look to go beyond our goal of helping clients preserve their art and collections and play a more active part in the art community at large.
P: Are you able to help me insure other things I collect like fine wine, jewelry, and antiquities?
KM: Yes, AIG Private Client Group insures a variety of Collectibles – from fine art to jewelry, wine, antiquities, collector vehicles, sports memorabilia, stamps and coins – the list goes on! Our collections coverage form is built to cover all of these classes and more.
Muys Snijders is head of Fine Arts and Collections Services at AIG Private Client Group. Kyle McGrath is head of Collections at AIG Private Client Group. AIG Private Client Group is a division of American International Group, Inc. (AIG). Insurance and services are provided by a member company of AIG.