Marsh’s Mining Market Update
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:
- Despite 2017 natural catastrophe losses significantly impacting the results of several major insurers, the average rate paid by Marsh mining clients reduced for the fifth consecutive year. However, the rate of reduction was limited and materially lower than in prior years.
- While the total property damage and business interruption insurance capacity secured by Marsh for mining clients has increased by 13% in the last five years - and total sums insured have increased marginally - the total annual premium collected by insurers has now reduced by more than US$150 million as rates decline.
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.