The next high-value risk sitting in a client’s safe might not be a painting, diamond, or rare fine wine. It could be a trading card.
This week, the record-breaking sale of a rare Pokémon trading card for nearly $16.5 million by influencer and WWE star Logan Paul landed pop culture headlines. Collectibles, once seen as niche hobbies, are now more firmly positioned alongside fine art, jewellery, and other alternative investment assets.
As capital flows into collectibles, high-net-worth (HNW) clients are diversifying portfolios beyond equities and real estate, creating demand for specialized coverage solutions.
According to a BBC report, Paul sold his PSA 10-graded Pikachu Illustrator card through auction house Goldin, setting what Guinness World Records confirmed as the most expensive trading card ever sold at auction. The buyer, venture capitalist AJ Scaramucci, described the purchase as the first in a planned “planetary treasure hunt” of ultra-rare assets.
The Pikachu Illustrator card was originally issued in 1998 as part of a Japanese contest, with only around 40 copies known to exist. Paul’s example is reportedly the only one graded PSA 10 (“virtually perfect” condition), a key driver of its premium valuation.
“The sale of this Pokémon card underscores a broader trend of non-traditional assets gaining legitimacy and liquidity,” said Olivia Eccleston (pictured on the left), assistant vice president, fine art & specie, at Marsh.
Although historically viewed as sentimental keepsakes, trading cards, sports memorabilia, and pop culture artifacts are increasingly recognized as alternative investments. Their value is driven primarily by scarcity and the strength of the secondary market, which mirrors traditional fine art markets.
Hester Pelling (pictured on the right), vice president - fine art, jewellery and specie at Marsh, noted that record-breaking sales such as Paul’s have coincided with a broader redefinition of what constitutes “valuable property,” and reflect an expansion in the scope of what is classified under “specie” insurance. Fine art and specie underwriting now routinely encompasses trading cards, rare sneakers, handbags, toys, and other pop culture memorabilia.
“This shift has driven demand to move coverage from standard homeowners’ property insurance to specialized collectibles policies,” Pelling said.
As a result, both carriers and brokers have deepened their expertise in areas such as valuation, provenance, and the condition of these unique items, especially in cases where the value may be uncertain until opened.
“Some collectibles, such as trading cards, can also be very fragile and damage could be catastrophic if exposed to water,” Pelling noted. “To address these complexities, bespoke policies are essential to manage uncertainties, market fluctuations, and inherent vulnerabilities.”
While ultra-rare trading cards share core risk exposures with fine art and jewellery, including theft, accidental damage, and transit loss, their risk profile diverges in several important ways.
Market volatility is one differentiator. While the art market experiences cycles, collectibles can be acutely sensitive to cultural trends, franchise popularity, or shifts in collector sentiment. A surge in demand tied to nostalgia or influencer attention can dramatically elevate prices, but just as quickly recede.
Authentication and provenance also pose challenges. Many collectibles were initially acquired for personal enjoyment rather than investment. As a result, formal documentation or grading may be incomplete or obtained years after purchase.
Condition sensitivity is another critical factor. “Collectibles such as rare books, signed copied and cards are vulnerable to damage from humidity, light exposure, and moisture,” Eccleston said.
Unlike a diamond necklace, a slight crease or edge wear can materially diminish value. This reinforces the importance of advising clients on protective measures, such as climate control, secure storage, professional grading, and robust documentation, as part of a holistic risk strategy.
One of the clearest implications of the Pokémon sale is the inadequacy of standard homeowners’ policies for high-value collectibles. Sublimits for collectibles, restrictive definitions, or actual cash value settlements can leave clients materially underinsured.
The Marsh specialists emphasized that tailored collectibles insurance should be bespoke to the collection’s risk profile. Trading cards, for example, demand a different underwriting approach than paintings due to grading sensitivity and price volatility.
Policies should provide broad, flexible coverage reflecting current market value so that settlement aligns with the asset’s worth at the time of loss. Avoiding onerous sublimits or restrictive basis-of-settlement clauses is essential in this space, according to Eccleston and Pelling.
Paul reportedly purchased the Pikachu Illustrator card for $5.3 million in 2021, then sold it for more than triple that amount in 2026. That appreciation highlights another point: rapid value escalation.
Rather than requiring constant revaluation, Eccleston and Pelling suggested prioritizing robust policies designed to accommodate market appreciation. Strong documentation (including invoices, grading certificates, provenance records, and photographs) remains critical to supporting claims.
“Policies should provide broad and flexible coverage that reflects the current market value, so that in the event of a loss, settlement matches the asset’s worth at that moment in time,” said Pelling.
Eccleston said: “Working with an insurance broker who understands this rapidly evolving market is essential. Specialists can ensure limits are sufficient, avoid restrictive conditions and tailor policy wordings to reflect how these assets are actually bought, sold and valued.”
