Dig for victory in softening mining insurance market, urges Willis
The global mining insurance market is showing signs of accelerated softening, according to Willis, with rates down, coverage broadening and capacity strong. The latest Willis Mining Market Review urges industry leaders to stay sharp in the face of evolving exposures, regulatory delays, and geotechnical risks, using strategic foresight and technical rigour to make the most out of these market conditions.
Key findings from the report include:
• Total capacity available for mining liability placements estimated to have increased for a third successive year following the emergence of new entrants and the increasing of line sizes deployed by existing insurers. Underwriters increasingly viewing mining as a profitable and appealing addition towards ambitious gross written premium (GWP) targets.
• Mining property damage and business interruption (PDBI) insurance experiencing double-digit rate reductions, while international liability carriers showing more flexibility on price than coverage
• Commodity-specific underwriting emerging, with precious metals attracting favourable terms due to bullish pricing. Casualty insurance market continues to show strong appetite for precious metals and mineral mining, while coal operations continue to face limited carrier interest and heightened underwriting scrutiny.
• Emerging risks in the mining sector prompting increased scrutiny and evolving insurance practices. Seismicity, both mining-induced and natural, is leading to exclusions and stricter underwriting. Flooding, driven by extreme rainfall, has become the most impactful natural hazard, prompting design changes. Tailings management is under heightened scrutiny, with the Global Industry Standard on Tailings Management (GISTM) now a baseline expectation for underwriters.
• Regulatory approval delays becoming more common due to complex regulations, ESG demands, and the absence of global standards, which slows project timelines. Additionally, underinsurance risk growing in some regions, as liability limits may not be keeping pace with inflation and increasing exposure.
Mining insurance trends vary across global hotspots: In South Africa, property rates are softening while cyber risks are on the rise. North America sees declining US property rates (−7.5% to −20%) alongside tightening casualty lines, while Canada faces stricter underwriting due to heap leach failures. In Asia, pricing remains stable, with ESG and tech-driven risk mitigation gaining momentum. Latin America is experiencing increased demand for captives driven by environmental liability and political risk. Meanwhile, in the Australia/Pacific region, climate risk and ESG regulations are significantly influencing underwriting appetite.
William Fremlin-Key, global mining and metals leader, Willis natural resources said: “The mining insurance market is ripe for optimisation, but success hinges on proactive risk management. Data-driven planning, strategic insurance spend, and early engagement with insurers are essential for firms looking to mitigate risks and capitalise on soft market conditions. Tools such as real-time monitoring, third-party reviews, and scenario modelling can help build resilience and design response plans. At Willis, we continue exploring the universe of risk and discovering innovative solutions to help our clients protect and grow their business, to build a sustainable future for mining and metals companies.”
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