Rates for mining risks declined globally in 2017, despite the headwinds created by the storm season in the second half of the year. Moving into the second quarter of 2018, there are no indications that insurers are set to reduce capacity for mining risks this year.
Marsh’s Mining Market Update analyses current global insurance market conditions for mining risks and includes market commentary from the key mining hubs of Australia, Canada, Latin America, South Africa, and the US.
Findings from the report include:
Matthew Gooda, Global Mining Practice Leader, Marsh, said: “While the natural catastrophe losses of the third quarter of 2017 cannot go unmentioned, for mining risks, increases in commodity prices are an equally important factor. Increases in business interruption declarations will require the insurance market to accept a general growth in risk exposure for the first time in five years. In the aggregate, the business interruption exposure transferred by our clients to insurers fell by US$60 billion in the four years from 2013 to 2016, before increasing by US$16 billion in 2017. This is an important change in trend that we expect to contribute to stabilisation of premium income for insurers.”
Read or download the full market update now.