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International Diamond Laboratory and DMCC launched the survey as part of evaluating market response to bundling purchases of diamond jewellery with an insurance option as a means of boosting customer confidence.
The 766 respondents in the survey included GCC nationals, expatriate residents and tourists of different age groups, 57% of whom had bought diamond jewellery over the past two months. The value of purchases varied from $1,000 to above $10,000 and 58% of the respondents were females.
Over 58% of the participants said they would have their diamond jewellery insured provided the premium did not exceed 3% of the purchase value. Of the male participants only 22% said they would get insurance if their purchase is worth less than $1,000 but 54% of the women voted for insurance irrespective of the purchase value.
Another interesting finding of the survey is that 45% of the women buyers, compared to 21% of the male respondents, preferred their lost or stolen jewellery to be replaced by the insurer. Majority of the men - 44% - preferred cash reimbursement against loss and theft.
Currently none of the diamond jewellery retailers in Dubai offer insurance and hence the only option for consumers is to get these valuables incorporated in their home insurance premiums. The add-on payable in such instances is often unreasonably high and disproportionate to the purchase value.
"The survey shows there is an overwhelming preference for insurance in the retail diamond market in Dubai. It is a great opportunity for retailers and insurers to work on affordable, transparent, and practical solutions that will benefit consumers as well as the diamond trade,"said Peter Meeus, CEO of International Diamond Laboratories.
"Offering insurance at the time of purchase has its advantages. First, it is a practical solution that will guarantee absolute peace of mind for the consumer. It will reassure consumers who are increasingly concerned about value-for-money and protecting their investment in these difficult times. Secondly, retailers who offer insurance will bring a distinction to their value proposition. Thirdly, increasing customer confidence will positively reflect on the retail and insurance sectors in Dubai," Meeus added.
Insurers cite lack of information on the grade and value of diamond as the reason for their reluctance to cover diamond jewellery. Certification without clear pictures of the piece or proper mention of the quality, weight, clarity, colour, finish and the number of diamonds is not considered as sufficient proof by insurers.
International Diamond Laboratories offers diamond and diamond jewellery certificates that define the 4 C's - carats, colour, clarity and cut - of a diamond, guaranteeing its quality and value.
"The International Diamond Laboratory certificate could become an essential tool in closing the gap between the demand for jewellery insurance and lack of information for the insurers. Not only does it give a clear picture of the piece in question, it also gives an accurate description of all the characteristics of the diamond jewellery," concluded Meeus.
Posted by Rana Mesbah
