How “Wondeur AI” is Improving Risk Analysis for Art Assets

McKinsey & Company analysts have predicted that artificial intelligence (AI) and its related technologies will have a seismic impact on all aspects of the insurance industry, from distribution to underwriting and pricing to claims.

“The insurance sector is built on the ability to manage risk and forecast the future. While many organizations are already transforming to meet the expected demands of both regulatory requirements and consumer needs, new and emerging technologies could offer a host of potential benefits to those that are willing to embrace change,” says KPMG. “Many successful insurance companies are riding this wave.”

One great example of the coming AI boom in insurance is Wondeur AI, which is transforming risk assessment in the art world. Leading insurance firms and their brokers across nine countries and two continents are using this AI system to analyze and monitor risk on value for millions of art assets, worth tens of billions of dollars in asset value.

Providing Risk Analysis on $1.4 Trillion Worth of Art Assets

Wondeur AI, an insurtech/wealthtech artificial intelligence company operated by expert AI researchers from MIT and the University of Toronto, is being used by such companies as The Cincinnati Insurance Companies.

“[We are] using the power of artificial intelligence through Wondeur AI to analyze multiple value dimensions and lifecycle opportunities for fine art, designed to answer the following two strategic questions: Is my collection well protected? What lifecycle options are there for my collection?” writes Matthew Cluxton, Assistant Vice President, Director Fine Art and Collectibles at The Cincinnati Insurance Companies.

The Cincinnati’s Upfront digital supplement says Wondeur AI can:

• Provide lending risk analysis on $1.4 trillion worth of art assets.
• Analyze the network of more than 35,000 key market influencers, such as galleries, museums and auctioneers.
• Benchmark over 350,000 artists and millions of assets daily.
• Monitor millions of assets simultaneously, highlighting those that may be undervalued.

The Science Behind Wondeur AI

How is Wondeur AI able to accomplish all this high-level analysis? Here’s the science behind how Wonder AI helps keep up with the evolving art market by providing an evaluation of insured clients’ art collections:

• Comprehensive Data Collection: It all starts with data … and lots of it! Wondeur AI has aggregated data for approximately 95% of artists born after 1900 who operated throughout the 20th century. (And in the latest iteration of this AI, it can analyze the art market as far back as 1850!). This extensive database covers various aspects of artists' careers, including:
  • Personal and collective exhibitions.
  • Collections.
  • Acquisitions.
  • Publications.

• Advanced AI Analysis: By leveraging artificial intelligence, Wondeur AI examines the interconnections between various events in an artist's career and makes predictions about:
  • Potential future risks throughout an artist's career.
  • Possible variations in the value of artworks.

• Holistic Art Market Assessment: Wondeur AI analyzes the entire spectrum of the art world, including:
  • Mechanisms that drive the art market.
  • Factors determining market evolution.
  • Impact of art institutions (galleries, museums, non-profit organizations) on the overall art world.

• Differentiated Approach: Wondeur AI sets itself apart from competitors by:
  • Providing deeper and broader analyses.
  • Identifying actual factors that determine value evolution, rather than just tracking simple trends.
  • Focusing on the entire art market, not just the top 1% of transactions.

• Multi-level Analysis for Collections: Wondeur AI supports the management of institutional collections, such as corporate art holdings, by performing four-level analyses:
  • By asset.
  • By artist.
  • By portfolio.
  • By market performance.
    
    This approach allows for:
    • Value and risk distribution assessment.
    • Identification of collection biases.
    • Guidance on building more representative collections.

• NFT Analysis: Wondeur AI has expanded its capabilities to analyze Non-Fungible Tokens (NFTs), applying predictive analysis to this new asset class.
• Integration of Human Expertise: Rather than replacing art experts, Wondeur AI aims to enhance and integrate human expertise with artificial intelligence, providing a powerful tool for art market analysis.

By offering these advanced capabilities, Wondeur AI is revolutionizing risk analysis for art assets, providing more accurate, comprehensive, and nuanced assessments that can benefit collectors, insurers, and other stakeholders in the art world.

WOND-A 9 Insurance: The Latest AI Risk Analysis

Wondeur AI has introduced WOND-A 9 Insurance, their latest AI system.

“Insurers partnering with us leverage Wond-A 9 to democratize access to cutting-edge client services and insurance to value risk monitoring at scale, making these services and intelligence accessible to all of their brokers and clients—regardless of the value of their collection or individual pieces,” says Wondeur AI.

Six facets of this advanced insurance AI:

1. Autonomously Brings Data to Life: The system autonomously extracts, parses and analyzes batches of assets—from a single asset to millions, from unstructured to structured databases or files. It allows clients to instantly turn their data into a strategic asset.
2. Delivers over 50 AI Predictions per Asset: Each asset receives over 50 AI-driven predictions, analyzing multiple value dimensions and lifecycle opportunities, including intrinsic, dealer, liquidity, and speculative values, as well as mispricing, current/future risks, lendability, sell ability, and donation potential.
3. Empower Underwriting, Broker Network, and Clients: This AI system is human-controlled, accountable, open-box; it is building, scaling, and speeding up expertise without replacing it. The streamlined workflow facilitates swift integration with broker networks, boosting efficiency and speed for renewals and new client acquisitions, and driving significant gains for your underwriters, brokers, and clients.
4. Delivers Automated High-End Client Reporting: The automated, high-end client reports provide universal access to advanced reporting services, regardless of an asset's value, democratizing luxury services at scale. Available as needed or on a regular schedule, these customizable reports feature detailed lifecycle analysis for each asset, boosting brand visibility, emphasizing key insurance and data risk insights, and enhancing service awareness. They complement in-house expertise, expanding and intensifying service impact across all client portfolios.
5. Delivers Live Cutting-edge Leadership Reporting: Automated cutting-edge Leadership reporting provides live analyses of risk concentrations (value, data, etc.) for the overall book of business or based on location, brokers, and more. These live analyses are customizable to align with the evolving strategic needs of the business and its leadership team.
6. Impacts over 88 Percent of Entire Book of Business: Designed for assets from emerging to blue chip artists, illiquid to liquid covering 95 percent of the art market after 1850; offering a scope that is 70 times larger than any existing solution. As a result, WOND-A 9 Insurance analyzes, on average, 88 percent of an entire book of business.

Wondeur AI Benefits Both Insurance Brokers and Their Clients with Art Assets

“Our streamlined workflow facilitates swift integration with your broker network, boosting efficiency and speed for renewals and new client acquisitions, and driving significant gains for your underwriters, brokers, and clients,” says Wondeur AI.

The Wondeur AI can be deployed in minutes without any IT investment required as the systems are engineered for rapid adaptability, to conform to specific operational processes and service requirements.

“When full integration is necessary, the process is fast and cost-effective as our systems are fully API driven,” explains Wondeur AI. “Our technology is tailored solely for asset description recognition and cannot identify or analyze personal client details like names, addresses, or phone numbers.”

The Cincinnati Insurance Companies says that a Wondeur AI evaluation can be requested when a client’s schedule for quoting new business is submitted and that it will automatically be provided to the insurance broker and policyholder prior to each renewal.

One word of caution, Wondeur AI says that “AI evaluations are not meant to replace, but instead, complement professional appraisals and can help your clients reduce the frequency of re-appraisals.”

Contact Dean & Draper today to learn more about how cutting-edge AI, like Wondeur AI, can help protect your most valuable assets.

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