Frank Crystal, a privately-held insurance brokerage firm, has launched a division that deals with fine art and other collectibles as alternative asset classes.

The Art Finance Group will work with both private collectors and firms, offering advice, products and services on managing the risks associated with financial transactions where art or collectibles are the underlying asset class.

According to the World Wealth Report 2011, published by Capgemini and Merrill Lynch, demand for fine art, rare wines and other offbeat investments surged in 2010, as wealth levels among high net worth individuals rebounded from the 2008 financial crisis.

"More and more collectors, investors and their advisors are recognizing that fine art, as well as collectibles like wine and jewelry, is an asset class, not just a passion," said Jonathan Crystal, executive vice president and head of the private client services group.

Frank Crystal, which is headquartered in New York and employs around 400 staff in the US, operates a private client group which provides insurance services to wealthy individuals, with a focus on risks to fine art.