2026 MARKET TRENDS

Fine Art

Key Takeaways

Financial uncertainty and reduced funding sources are impacting the entire art ecosystem. Budget constraints can lead to deferred maintenance on buildings and critical systems like security and climate control, elevating risk
Both the frequency and severity of extreme weather and wildfire events have increased, resulting in insurance carriers responding with stricter underwriting for fine art organizations in high-risk zones, influencing coverage availability and cost
The potential for civil unrest and political tensions can affect everything from the safety of a gallery in impacted areas to the ability to retrieve artworks during closures
Growing technological risks range from ransomware attacks that can paralyze operations to data breaches that compromise sensitive collection or inventory information

Stricter underwriting is leading to higher deductibles and, in some cases, more restrictive coverage terms.

Overview

The fine art insurance market is currently a tale of two realities, largely dependent on an organization's geographic location and risk profile.

For many museums, foundations and fine art businesses located in areas with low exposure to natural disasters, the market is quite stable. In addition to flat renewals, carriers are now competing for your business, which is welcome news. Those in a lower-risk location may be able to negotiate higher limits or broader protections to strengthen financial resilience without much extra cost.

The story is different for organizations in catastrophe-prone (CAT) regions — such as those exposed to wildfires, hurricanes or flooding. Even though rate increases are currently modest (around 5%), underwriting scrutiny has increased.

Market Conditions

Carriers are asking detailed questions about risk management practices, climate risk mitigation strategies, disaster preparedness plans and the physical protections in place for facilities and collections. In some regions, underwriters want to see a plan for relocating your collection in the event of an emergency evacuation order.

Stricter underwriting in CAT-prone areas is leading to higher deductibles and, in some cases, more restrictive coverage terms.

Coverage availability may become a challenge in CAT zones, with carriers becoming more selective about the risks they are willing to take on. This makes a strong risk management story more important than ever.

Brown & Brown expects 2025 market conditions to largely carry into 2026, defined by a split between high- and low-risk environments. The line is blurring as weather patterns shift. Areas previously considered safe are now experiencing events like inland flooding and severe storms. As a result, carriers will likely apply more granular risk assessments to a broader range of locations.

Here are four key cautions:

Potential for increased claim filing:

Amidst economic pressures, organizations that might have absorbed small claims in the past to preserve a good loss history may be inclined to file those smaller insurance claims when money is tight. While this practice may help a balance sheet in the short-term, it can lead to higher insurance prices and make it more difficult to procure insurance from a new carrier.

Art warehouse aggregation risk:

The concentration of large values in a handful of major art storage warehouses remains a significant concern for the entire industry. Because a single catastrophic event at one of these facilities could have devastating consequences, carriers are capping the amount they will cover at a particular storage location.

Art market and valuation shifts:

A significant volume of high-quality art is entering the market from estates, with some artists reaching record-breaking values. Auction results have been mixed, however, with some works selling far below previous highs. This highlights the need for up-to-date valuations to determine adequate coverage. For businesses like galleries, a selective market may also affect inventory levels and insurance limits.

Political risk:

In several locations around the world, civil unrest and political violence have increased, requiring detailed risk management planning to help keep people, facilities, collections and loans safe.

Rate Outlook

Impacts & Considerations

Because underwriters are intensely focused on climate-related risks, expect detailed questions about flood and wildfire mitigation strategies, the resilience of your facility’s construction and specific disaster response plans for your collection.

Beyond natural disasters, carriers are also scrutinizing deferred maintenance, especially for critical systems like roofing, plumbing and HVAC, as failures can lead to significant water damage claims. Demonstrating active, future-focused property management and having a well-documented risk mitigation strategy are essential for securing the most favorable terms and pricing.

Strengthen climate and disaster preparedness

Document specific plans for mitigating risks from fire, flood, wind and other perils. Underwriters are looking for detailed strategies, including emergency protocols, evacuation plans for your collection and physical protections for your facility. For organizations in emerging risk zones, demonstrating preparedness is crucial for securing favorable terms.

Take advantage of the stable market

If your organization is in a lower-risk geographic area, the competitive market conditions may allow you to increase coverage limits or broaden protections for a minimal increase in cost.

Review your budget and inventory

Look for strategic ways to manage costs without compromising protection. For dealers and galleries, this may involve returning unclaimed/expired consigned works or facilitating faster delivery of sold art to lower the total insured value.

Manage transportation risk

Damage in transit continues to be a leading cause of fine art claims. Create clear contractual agreements that define responsibility and liability for any art in your care, custody and control, especially when dealing with third-party shippers, handlers and borrowing institutions.

Prioritize your cybersecurity defenses

Invest in fundamental cybersecurity practices to protect your digital assets and operations. Insurers want to see strong cybersecurity hygiene, such as multi-factor authentication, regular employee training, secure backups of critical data and a clear incident response plan.

Conduct diligent vetting

Before loaning or consigning artworks, thoroughly review the facility reports, security protocols and climate controls of any borrowing institution, gallery or storage warehouse. Your loan agreements need to include clear provisions that allow you to retrieve your property if access becomes restricted due to strikes, closures or other unforeseen events. Similarly, vet your technology vendors to understand their security measures and clarify who is responsible for protecting your data.

Look closely at aggregation risk

Some carriers cannot write further values in specific high-demand art warehouses, and some may impose a sublimit on these locations. Before moving into a new warehouse, make sure you'll be able to smoothly add the new location to your policy or allow enough time to find alternatives. Consult with your fine art insurance broker and vet the facility's risk management protocols, fire suppression systems and overall security.

Examine political risk coverage

There is growing interest in specialized political violence or political risk insurance. This coverage is highly technical and often contains significant exclusions, particularly for events involving government action.

Download this report

Go to Employee Benefits Report

Go to Personal Insurance Report

Ready to find your solutions?

Let's chat

Brown & Brown, Inc. and all its affiliates, do not provide legal, regulatory, tax guidance and/or advice. If legal advice, counsel or representation is needed, the services of a legal professional should be sought. The information in this document is intended to provide a general overview of the topics and services contained herein. Brown & Brown, Inc. and all its affiliates make no representation or warranty as to the accuracy or completeness of the document and undertakes no obligation to update or revise the document based upon new information or future changes.