Published: 27-Mar- 2017 | Category: | Comments: 0
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.