Mining Market Update
The global insurance marketplace for mining risks continued to soften throughout the second half of 2015. Lower commodity prices eroded the premium base, driving down physical damage/business interruption (PD/BI) values at risk and compounding the competitiveness of the market.
The latest Mining Market Update features market commentary from the international markets for mining risks, and the key mining hubs of Australia, Canada, Latin America, South Africa, and the US, with in-depth analysis and commentary on current global insurance market conditions for mining risks.
Key findings from the report include:
- PD/BI rate reductions averaged 14% in the 2015 calendar year, with modest progression of coverage given.
- Continued, ready availability of insurance capacity for mining risks, with very limited exceptions.
- Samarco’s dam failure in November 2015 changed underwriting guidelines considerably in Brazil, but had little impact elsewhere. The event did, however, draw attention to the relative low limits to the protection purchased by mining clients, versus the potentially catastrophic impact of tailings dam failures.
- The adequacy of tailings dam risk management information will continue to be a key issue throughout 2016, and clients can consider engineering updates on tailing facilities a continuing requirement.
- The casualty marketplace showed stability in 2015, with more moderate declines in international markets and increases for some risks in certain regions, such as the US.