Published on
14 October 2024Reading time
3 min.
The luxury industry in France represents a key sector of the economy, with ramifications ranging from fashion to cosmetics, including jewelry. These different sectors share a quest for excellence, but they also face unique insurance challenges. Stéphanie de Montricher, Head of the Fine Art department at Liberty Specialty Markets France (LSM), sheds light on the specific challenges of this constantly evolving field.
What are the specific risks encountered by the luxury industry?
The flagship of the French economy, the luxury industry is extremely varied. I am thinking in particular of the fashion, jewelry, beauty and even high-end hotel sectors. It is also important due to the diversity of sizes and types of its companies. We can therefore talk about both ultra-specialized family SMEs and CAC 40 multinationals.
This heterogeneity, which makes the French industrial fabric rich, is also a source of complexity in risk management, both at the national and international level.
I am naturally thinking of the risks linked to the cancellation of events, which can constitute a significant financial loss, whether in the event of a fashion house being forced to cancel a show during Fashion Week or a luxury hotel for the organization of parties, weddings or seminars. I am also thinking of Fine Art because many of these players have corporate collections…
However, we must also consider risks that we do not spontaneously think about, such as the risk of terrorism, because public events, such as fashion shows or product launch parties, can generate this type of threat, making the need for security essential. . There are also risks linked to the transport of goods, the liability of managers, the environment and of course cyber. In the latter case, luxury brands are prime targets for hackers due to the value of their customer data and products.
Due to this diversity and complexity of risks, tailor-made support from the insurer is essential.
Why is it crucial to be supported by an expert insurer in the luxury industry?
In a sector with such varied and demanding requirements, it is essential to work with an insurer who understands the many specificities. It must not only be reliable but also capable of offering innovative solutions to adapt to market developments while offering a personalized approach.
It is also essential that the insurer masters the issues linked to brand image, the supply chain, the geopolitical context, civil liability, etc. in particular by adapting to regulatory changes and by offering prevention solutions. adapted.
At LSM, we are able to offer expertise and insurance solutions for all the risks that the luxury industry may face. By implementing a personalized customer approach, always in a tripartite relationship with the broker, we are able to provide a global insurance response.
What actions are you implementing to support this industry?
Before actions, it is firstly about humans. At LSM we have employees experienced in managing all the risks encountered by this luxury industry, accustomed to working for it.
In terms of actions, we put in place tailor-made support through a case-by-case study of all risks. Thus, we offer the company, through its broker, a global and expert response. It’s a real guarantee of satisfaction!
In addition to people or our commercial approach, I am proud to see that the luxury industry and LSM share common values. First of all, it is of course the same search for excellence which involves precision and innovation. It is also a strong shared societal involvement. Because if the luxury industry has always been a pioneer on the subjects of diversity and inclusiveness, these themes are at the heart of the values of LSM which takes a daily stand for the inclusion of diversity or LGBTQIA+ rights.
This relationship between luxury companies and LSM is now anchored: we work with 100% of the luxury players in the CAC 40 and SBF 120 on different programs or branches of activity.
