This year’s Mining Market Update comes at the end of the third quarter of an unprecedented year with COVID-19 continuing to have a dramatic impact on all of us. Benefiting from a combination of global uncertainty, fiscal stimulation packages, and the transition to green technology, the mining industry is experiencing record prices for many commodities — a boon for the mining industry but presenting its own challenges to the insurance industry.
2021 has also seen the insurance industry return to profitability, yet it has been a dramatic year for climate-related catastrophe losses, the impact of which will only be felt by the insurance market as we head into 2022.
Marsh’s Mining Market Update analyzes current global insurance market conditions for mining risks and includes market commentary from the key mining hubs of Australia, Canada, China, Latin America, South Africa, and the US.
The market’s return to profitability and the emergence of new capacity is leading to a reduction in renewal rate increases.
There have been rate increases of circa 10% for both property and casualty insurance markets in the first half of 2021.
Business interruption exposure is becoming increasingly significant.
New capacity available in the directors and officers (D&O) market has helped to stabilize the market.
Environmental, social, governance (ESG), and sustainability are beginning to have an impact on market decision making.
This report highlights the continuing need for clients to provide the insurance market with a detailed, risk management-focused submission. Risk differentiation remains key to securing the most satisfactory insurance renewal outcome.
Read or download the full market update now.