Hiscox is to launch an index in a bid to help high net worth policyholders avoid underinsurance.
The insurer said the index was designed to "track the value of home-owners' belongings, including art, books, clocks, furniture, silver and other collectible items".
Robert Read, fine art underwriter in Hiscox's art and private client division, said: "The Hiscox Art Market Research Index will allow our clients to index-link the values of their collections in the same way that the Retail Price Index ensures that their general contents are more fully covered."
Hiscox said it would develop a compound growth rate for the sum insured. This would be based on a weighting system "which adjusts dependent on market conditions and ensures the index is immune from market anomalies or spikes in sales".
The index will be rolled out to brokers in January.
