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Mining Market Update


Market commentary from key mining hubs, with in-depth analysis and commentary on current global insurance market conditions for mining risks.

The global insurance marketplace for mining risks continued to see premium and rate declines throughout 2016, with recent increases in some commodity prices not yet sufficient to turnaround the overall decline in mining insured values. Reductions were concentrated in physical damage/business interruption (PDBI) and terrorism risks, and most regional markets also continued the downward trend.

The latest Mining Market Update features 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:

  • In the PDBI market, underwriter total premium income declined by 16% in the aggregate across a large group of Marsh mining clients.
  • Rate reductions continued throughout the course of 2016 on the back of continuing positive results for most markets, an awareness of the availability of competitive capacity, and an absence of major losses.
  • The Samarco dam failure in November 2015 continues to draw attention to tailings management and design, with detailed information now a prerequisite to securing cover from certain insurers.

Within casualty markets, a heightened awareness of tailings dam risk has prompted a meaningful group of mining companies to review overall limits of liability purchased, with current market conditions allowing an attractive opportunity to increase protection.

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 JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) 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 JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.