Specialty insurers are carving their niche by providing coverage for high-value items that traditional insurance companies often shy away from.
Enzo Ferrari, chairman and CEO of Private Collection Insurance, spoke of the trends emerging within this space in a recent interview with IBTV.
He also shared his optimistic outlook for the specialty insurance sector in the latter half of 2023.
“My prediction is that specialty insurance will continue to grow, [especially as] domestic insurance companies are becoming more and more restrictive in terms of what they're going to insure,” he said.
According to Ferrari, this cautious approach among traditional insurers has allowed specialty insurance providers like Private Collection to step in and fill the void.
Ferrari’s business is focused on high-value items like watches, diamonds, and jewellery. The MGA also offers coverage for unique collectibles such as stamps, sports cards, and even rare bottles of Scotch.
“With Private Collection, we feel that we’re filling a niche in the high valued items and collectible industry,” he said.
When questioned about challenges facing the specialty insurance market today, Ferrari pointed to inflation as a “big factor” in Private Collection’s business.
The aftermath of the pandemic brought a surge in the prices of collectibles and high-value items, according to Ferrari, partly driven by people spending more time at home and investing in hobbies.
But even with the challenges brought by inflation, Ferrari is “not a big believer in the recession,” asserting that the “market is still very strong.”
“The economy is still very strong, but I do think inflation is probably the biggest factor facing specialty insurers and making sure that we're adequately insuring our customers’ products,” he said.
Learn more about Enzo Ferrari’s insights on the specialty insurance market by watching his full IBTV interview.
