Getting a valuation on shop stock can be tricky for jewellers in this era of volatile gold prices. Another factor is the estimated value of diamonds which can vary according to cut, clarity, carat weight etc. Here’s the word;
The National Association of Jewellers’ (NAJ) Institute of Registered Valuers (IRV) has introduced mandatory diamond screening within its valuation guidance, a move that addresses a growing and material risk exposure for jewellery insurers.
Advances in technology have significantly increased the prevalence of laboratory-grown diamonds, which, in most cases, cannot be reliably distinguished from natural gemstones using traditional assessment methods. For insurers, this creates a clear risk at policy inception, where misidentification can lead to inaccurate sums insured, misaligned premiums, and heightened exposure to dispute at the point of claim.
By requiring all diamonds to be screened as part of the valuation process, the IRV is strengthening the evidential basis for insuring jewellery. The updated standard provides insurers with greater confidence that declared values accurately reflect the nature of the gemstones being insured, supporting clearer underwriting decisions and more defensible claims outcomes.
This development signals a broader shift towards tighter validation requirements for high-value jewellery, particularly within the high-net-worth (HNW), fine art, and specie insurance markets. As claims scrutiny intensifies and valuation accuracy becomes increasingly critical, the IRV’s approach establishes a clear benchmark for best practice that aligns with insurers’ expectations around transparency, due diligence, and risk control.
From an insurer’s perspective, the revised guidance helps to:
⦁ Reduce the likelihood of material misvaluation at policy inception
⦁ Minimise disputes relating to diamond provenance at the point of claim
⦁ Support more consistent underwriting decisions for high-value jewellery risks
⦁ Strengthen reliance on independent valuations in litigation or loss adjustment scenarios
The IRV is actively engaging with insurers to ensure these enhanced standards are recognised across the market, providing a clearer distinction between valuers working to robust, defensible methodologies and those operating without appropriate validation processes. This collaboration helps insurers identify valuation partners that align with modern risk management requirements.
IRV Chair, Sammantha Maclachlan, said,
“The diamond market has changed fundamentally, and the risk implications of that change are particularly significant for insurers. Mandatory diamond screening gives greater certainty, reduces ambiguity, and strengthens the credibility of valuations relied upon for underwriting and claims. This is about protecting all parties involved and ensuring valuation standards evolve in line with the realities of the market.”
The IRV will continue to support its members through updated technical guidance and professional development, helping to ensure consistent application of the new standard. Further discussion, including practical demonstrations of screening equipment and insurer-focused insights, will take place at the NAJ Valuers’ Conference on 16–17 May 2026.
To search registered valuers in your area, view…
https://naj.co.uk/find-an-irv
