Fine art insurers are calling on Scotland Yard to reconsider its annual budget after cuts forced a scaling down of the arts and antique squad.
It is understood that police have failed to find the private money needed to fund the unit after its £300,000 budget was sliced in half earlier this year.
Insurers have now expressed their concern about what the implications may be on the sector, with an estimated £200m worth of stolen pieces sold in the UK each year.
One senior fine arts specialist, told Insurance Times: "Art crime is carried out by criminals who are often very active in other areas and this represents a line of attack into crime in general."
He added: "In other countries similar units exist and have proportionally more resources, and thus we are in the camp calling on the Yard to think again."
Police had sought private money to finance the unit from both insurance companies and auction houses, but failed to get a single penny.
Reports suggested that insurers disagreed with the request for industry funding into the detection of art crime over concerns that it would create a conflict of interest.
"The idea of private funding for the police is privatisation of a sort and would be a political step that all sides would want to consider carefully," said the source. "Insurers ultimately charge back costs of doing business to their clients."
