Despite a general hardening of rates due to recent losses, especially those related to tailings dams, global mining insurance is "not yet a truly hard market," according to a Willis Towers Watson PLC risk review for 2019.
"Capacity remains plentiful by historical standards and when rates are on an upward trend, we are by no means in a truly distressed situation," said Graham Knight, global head of natural resources at Willis Towers Watson.
The last 12 months have been a difficult and challenging time for the mining and insurance and risk management industries, according to the report. The mining sector has dealt with multiple tailings dam tragedies and been subject to "unfavorable" press and, at times, a "strident" attitude to environmental concerns that makes the industry look bad, Willis Towers Watson said.
The insurance broker also said a distinct change in the underwriting climate in a number of "heavy" industries, including mining, has taken place due to negative results across the global property and casualty space.
