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Insuring art and similar valuables is a growth–albeit niche–business, increasing at a rate in excess of 20 percent year, players in the field say. But there are also negatives, these experts warn.

For example, these players say, the margins are thin, and because of the quick growth, capacity is becoming an issue. It is also, in the view of one major broker in the field, wrought with “moral hazard exposures and potential fraud.”

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