The Insurers Federation of Egypt (IFE) has stressed the need for insurance companies to cooperate with the Ministry of Culture and the Supreme Council of Antiquities to develop unified technical mechanisms to assess the risks associated with antiquities and cultural artifacts.
The Federation, in its latest weekly bulletin released on 1 November, also said that work must be done to launch specialised training programmes for those working in insurance companies or with museum administrations, in addition to encouraging the creation of new insurance products to cover artifacts.
The federation’s publication of the weekly bulletin coincided with the opening of the Grand Egyptian Museum, which houses the largest and most comprehensive collection of Egyptian antiquities in Egypt and the world, including the complete collection of King Tutankhamun's treasures for the first time.
According to the bulletin, the total number of Egyptian museums is 83 nationwide, including 73 museums specialising in art and history, and 10 museums related to the natural, pure and applied sciences. Cairo Governorate has the largest share, with 22 museums, followed by Alexandria Governorate with 17 museums, according to a report by the Central Agency for Public Mobilisation and Statistics. The Ministry of Culture and the Supreme Council of Antiquities are responsible for protecting the collections, while Egyptian insurers provide limited coverage for exhibitions or temporary displays.
Museum insurance policy
The IFE has designed an insurance policy for museums to cover losses or damages that artifacts and antiquities may be exposed to, including while they are housed in museums or are transported to be displayed in international exhibitions or events abroad.
The policy requires that records be kept that include an accurate and detailed inventory of all artifacts or works of art insured under the policy. There are also requirements for how insured items are packed, unpacked and shipped by specialised and/or professional packing and shipping companies.
Risks that museums are exposed to include hazards, such as fires, floods, earthquakes, storms, and landslides, with fires being among the most common and dangerous, especially in old museums that lack advanced protection systems.
Human-caused risks include theft, deliberate vandalism, administrative negligence, or errors during transport or maintenance, noting that international statistics show that museum thefts represent a large proportion of cultural crimes worldwide.
The IFE also said that the transportation or temporary exhibitions of antiques are among the most dangerous phases due to the risk of artworks being lost or damaged. Insurance companies issue specialised policies to cover these short-term risks. The IFE added that digital transformation in museums has introduced new types of risks, including cyber attacks or the loss of digital data related to the collections, stressing the importance of covering cyber and hardware risks.
Challenges
The main challenges in providing insurance coverage for museums and archaeological sites are the lack of insurance awareness, the high cost of assessment and coverage due to the high value of the artifacts, and the limited availability of accurate technical data, said the IFE.
The Federation also explained in the bulletin that assessing the insurable value of art and cultural artifacts is one of the most complex aspects of this type of insurance, given that the true value of antiquities and artworks transcends purely material market concepts. It noted that the valuation process relies on several factors, including rarity, authenticity, historical significance, physical condition, and current market value. Certified appraisers are consulted to determine the precise value, and reinsurance companies often share in the risk to mitigate the financial burden.
Risk management
The IFE added in its bulletin that the role of insurance companies is no longer limited to financial compensation after losses occur, but has extended to include participation in risk management, through providing preventive consultations to improve protection and monitoring systems in museums, conducting periodic field visits to assess the readiness of museums to face disasters, training employees to deal with emergencies, as well as providing advanced alarm and rescue systems in cooperation with security and civil protection departments.
The IFE said that the insured items are valued not only for their material value, but also for their symbolic and cultural value, which is difficult to assess financially.
It said that insuring museums represents a comprehensive protection umbrella for Egyptian cultural and artistic heritage, and that developing this type of coverage contributes to consolidating Egypt’s position as a leading country in preserving its cultural heritage using financial tools.