Marsh’s Mining Market Update 2019

In 2018 there was an unusually high frequency of relatively severe insured loss events in the mining sector — compounded by further natural catastrophe loss events. There was increasing pressure by insurers upon rating, but the market remained vibrant, with no material reduction in capacity available to insurance buyers.

The latest Mining Market Update features market commentary from the key mining hubs of Australia, Canada, Latin America, South Africa, and the US, and in-depth analysis and commentary on current global insurance market conditions for mining risks.    

Key findings from the report include:

• Mining sector property damage/business interruption (PDBI) losses exceeded US$647 million in 2018 — and a majority of mining companies experienced a modest rate increase.
• PDBI capacity for mining risks reduced by a nominal amount in 2018 — but Casualty markets are poised for more significant change in 2019.
• The Córrego do Feijão dam failure is at the forefront of underwriters’ minds, although no immediate restriction in PDBI capacity available for tailings dams has been seen.

This report highlights the need for clients to establish high-quality and independently reviewed risk management plans and to provide high-quality risk information, in relation to tailings risk in particular, in order to secure a satisfactory insurance renewal outcome in 2019.