1.Majority of participants favour affordable and transparent cover against loss and theft
2.International Diamond Laboratories says its certification provides valuable information for consumers, retailers and insurers
A significant majority of people buying diamond jewellery prefer to have their purchase insured against loss and theft irrespective of the value of such purchase, according to a survey conducted by International Diamond Laboratories with the support of Dubai Multi Commodities Centre (DMCC).
The survey also showed consumers overwhelmingly voting in favour of affordable insurance as against existing premiums on diamond and jewellery, which are seen as unreasonably priced.
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 three per cent 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 â€“ 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.
â€œThe 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,â€ said Peter Meeus, CEO of International Diamond Laboratories.
â€œOffering 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.
â€œSecondly, 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,â€ 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 Câ€™s â€“ carats, colour, clarity and cut – of a diamond, guaranteeing its quality and value.
â€œThe 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,â€ concluded Meeus.
About International Diamond Laboratories
International Diamond Laboratories is a DMCC initiative and a direct result of the Diamond Master Plan that DMCC adopted in 2007 to further develop services for the diamond trade. International Daimond Laboratories provides diamond traders and jewellers with quality reports/certificates of authentication of polished diamonds. These certificates assure customers that the diamond they purchase is of high quality. International Diamond Laboratories provides high-quality diamond certification services from its headquarters in the UAE and at branch offices
In Antwerp, Belgium and Mumbai, India.
Employing proprietary technology and with a focus on research and development, International Diamond Laboratories is transforming the traditional art of diamond grading into a science, ensuring the highest possible level grading standards along with the greatest level of consumer confidence. Services of International Diamond Laboratories are additionally customised to best meet the needs of its clients in the region. The company is the only service provider worldwide to issue not only English- but also Arabic-language diamond certificates.
For further information, please contact: Lisa George/Riham Musleh, ASDAâ€™A Burson Marsteller.