The Criminal Practices of Certain Insurance Companies in the Art Market When Art Becomes a Victim of Opacity and Misleading Practices

 

The Criminal Practices of Certain Insurance Companies in the Art Market
When Art Becomes a Victim of Opacity and Misleading Practices
Greek & Cypriot Association of Art Authenticators & Appraisers

Athens – Nicosia

 

In recent years, art insurance has become one of the most critical—but also most controversial—areas of the art market. Our Association has identified serious discrepancies and abusive practices that constitute not only unprofessional conduct but potentially fraudulent behavior against collectors, private owners, and institutional holders of artworks.

The Problem

Many insurance companies in Greece and Cyprus accept artworks for coverage without requiring independent verification of authenticity or valuation.
In numerous cases, the insured value is based solely on the client’s declaration, without any legally recognized or institutional verification.
Even more concerning is the practice where insurance companies select or appoint the “appraisers” themselves, often operating without independence or accredited certification, creating clear conflicts of interest.

When damage, loss, or claims arise, these same companies often invoke new “appraisals” or challenge the authenticity of the artworks they initially insured.
As a result, contrary to their original acceptance, they deny or delay compensation, leading to numerous court cases in Greece and Cyprus—detrimental to collectors and private owners who acted in good faith.

The Association’s Position

The Greek & Cypriot Association of Certified Art Appraisers and Authenticators condemns these practices unequivocally and advocates for clear regulations ensuring transparency and accountability among all parties involved. Specifically:

• No art insurance should be issued without an independent, certified appraisal of both value and authenticity.
• Appraisers must be completely independent from both the insurance company and the insured.
• In the event of a claim, the original appraisal certificate should be recognized as an official document unless fraud is proven.

Art is both a cultural and economic asset. It should not be subjected to arbitrariness, opacity, or commercial manipulation at the expense of truth and market integrity.

Art insurance is not a bureaucratic formality—it is a relationship of trust.
It requires transparency, professional ethics, and institutional oversight.
Our Association will continue to monitor, document, and publicize such practices, safeguarding the credibility of certified professionals and the integrity of the art market in Greece and Cyprus.

Greek & Cypriot Association of Art Authenticators & Appraisers
📍 Athens – Nicosia
🔗 Committed to Transparency, Integrity, and Cultural Value Protection