Head of bespoke insurance warns insurers that they will ’not want to pay more’ than they need to in replacement costs

NFU Mutual has warned that certification is “vital” to determine appropritate insurance offerings for natural and lab grown diamonds.

In a statement released yesterday (20 July 2023), the high net worth (HNW) insurer said it had noticed a rise in the popularity of lab grown diamonds.

This is because instead of needing billions of years to form, artificial diamonds can be formed in a laboratory in a matter of weeks by applying immense heat and pressure to carbon.

The result is a glistening stone that can appear visually identical to a natural diamond, yet it is worth significantly less.

For example, according to the Jewellery Valuers Association, one carat natural diamond ring valued at over £15,000 could appear identical to a one carat lab grown diamond ring valued at under £7,000.

Dawn Blazier, head of bespoke insurance at NFU Mutual, said it was “vital we are aware of this new industry and make sure customers provide regular valuation, allowing us to adequately protect their most treasured possessions”.

“The key thing here is scarcity,” she added.

”The high value of natural diamonds is due in large part to the fact they are a finite resource, whereas lab grown diamonds can be quickly produced and will likely decrease in relative value as more and more are made.”


For firms insuring an artificial diamond, Blazier said “you will not want to pay more than you need to, given the replacement will be much lower than a natural diamond”.

“Given the similarity between natural and lab grown stones, this makes retaining or getting certification or accurate valuation all the more important,” she said.

“If you lose a natural diamond you will not want it replaced with a lab grown diamond and similarly it is important that it is insured for the true value.”