Collectors of fine whisky the toast of AIG
WITH prices of rare whisky soaring into the six and seven digits, ensuring the precious spirit is protected is not only recommended but essential, says Ron Fiamma, head of global collections at AIG’S private client group.
The insurance giant has seen such an uptick in whisky collecting that it has expanded its coverage of speciality collections to include those whose tastes run to a 1926 Macallan.
“Whisky collectors now number in the many hundreds, closing in on 1 000 individual collectors of all stripes and values,” says Fiamma of AIG customers highlighting whisky within their insured collection.
“When auction houses are holding two or three whisky auctions a year, with some whisky going for a million or half-a-million dollars, clearly it warranted attention.”
To wit, on November 29 a bottle of The Macallan that spent six decades in an ex-sherry oak cask sold for a record price of £1.2 million (R21.5m) at Christie’s London. A rare 60-yearold Macallan whisky fetched $1.01m (R14.2m) at Bonhams Hong Kong in May. A second bottle from the same vintage was sold later the same day at the same auction for $1.1m. Both sold for more than twice their high estimate.
Rare whisky has appreciated
140 percent in the last five years, according to the Vintage 50 Index compiled by Rare Whisky 101.
AIG has seen an almost tenfold increase in new submissions for whisky insurance year-over-year.
And while noteworthy on its own, the rise in both prices and attendant need for insurance also gives a view into the changing landscape of alternative investments. For instance, art and jewellery continue to top the list of insured collectibles at AIG right now, says Fiamma, but there has been a significant increase in interest in protection for whisky, watches and cars, marking a shift in focus from what many view as traditional collectibles, and also how wealth is being transformed by younger generations.
When it comes to watches, AIG is currently tracking a 20 percent increase in policies year-on-year, as well as a 15 percent increase in the vintage car business.
With a lower entry price point, generally, Fiamma has witnessed a younger demographic attracted to collectible timepieces.
“They’re fun. You can use them, look at them, carry them with you,” he says, but advises owners to be aware of the size of their collection.