Beyond price tags: How can insurers quantify sentimental value?

Jewellery often carries more than just financial worth — it holds deep sentimental value tied to memories, relationships, and personal milestones.

A grandmother’s engagement ring, a necklace gifted by a loved one, or a charm bracelet from childhood can be emotionally irreplaceable.

However, when such items are lost or stolen, insurance claims typically focus solely on their monetary value, neglecting their true significance to the owner. The challenge lies in quantifying this sentimental worth in a way that is fair, measurable, and practical for insurers.

The limits of traditional insurance valuation

Standard jewellery insurance policies assess value based on factors such as material composition, craftsmanship, brand reputation, and market demand.

Appraisals determine the replacement cost, but they fail to capture the emotional loss. This gap in valuation can leave policyholders feeling frustrated and inadequately compensated when they lose an item that holds immense personal meaning.

The difficulty lies in the subjective nature of sentimental value. Unlike rare gemstones or designer pieces with clear price points, emotional worth cannot be measured in carats or resale value. For insurers, the challenge is to develop a framework that incorporates personal significance without creating inconsistencies in claim evaluations.

Emerging approaches to quantifying sentimental value

1. Sentimental index metrics

A possible solution is creating a Sentimentality Index, a standardised metric that assigns a value to emotional attachment. This could be based on:

• Ownership history: How long the item has been in the family or with the owner
• Occasion of acquisition: Whether it was a wedding gift, inheritance, or milestone purchase
• Emotional documentation: Stories, photographs, or videos showing the item’s significance
• Personal investment: Any restoration efforts or modifications made to preserve it

By integrating these factors into a structured evaluation, insurers could provide additional compensation beyond replacement costs.

2. AI-powered emotional analytics

Advancements in artificial intelligence (AI) and sentiment analysis could assist in quantifying sentimental value.

AI-powered algorithms can analyse a claimant’s personal statements, social media posts, or even biometric responses to determine emotional attachment. By cross-referencing emotional indicators with the jewellery’s background, insurers could assign a more accurate sentimental compensation.

3. Blockchain for provenance and emotional value tracking

Blockchain technology could be leveraged to document and verify an item’s sentimental significance.

A “sentimentality ledger” could track ownership history, key life events associated with the jewellery, and any emotional records submitted by the owner. If lost or stolen, this information could help insurers assess an item's sentimental worth with greater accuracy.

4. Wearable biometric data for emotional distress measurement

Another futuristic possibility is using biometric wearables to measure stress levels upon jewellery loss.

Devices like smartwatches could track physiological responses — heart rate spikes, stress hormone levels, or sleep disturbances — helping insurers gauge the emotional impact of the loss and adjust compensation accordingly.

The future of insurance: a more holistic approach

While these methods may seem unconventional, they highlight the evolving nature of insurance in the digital age.

As technology advances, insurers have an opportunity to redefine value beyond price tags, recognising that some losses are deeply personal.

A future where sentimental value is quantified and compensated fairly could bridge the gap between financial reimbursement and emotional closure, offering policyholders a more holistic and empathetic claims experience.

Authored by Yuliya Lebedyeva, a gemmologist and diamond grader at IVAA Claims. A registered valuer fluent in four languages, Yuliya brings a global perspective to jewellery and high-value claims.