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RESEARCH AND BRIEFINGS

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.

"Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by Jardine Lloyd Thompson Pty Ltd (ABN 69 009 098 864, AFSL 226 827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions.

This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from Marsh on request.