Willis: Mining insurers compete on double-digit rate cuts as soft market deepens

The global mining insurance market is entering a pronounced soft phase, with insurers competing aggressively on price and broadening coverage terms, according to a report from Willis.

Rates are down across property and liability classes relating to extractive business, while capacity is expanding and underwriting appetite is strengthening, the broker’s study emphasised.

The latest “Mining Market Review” warned that even as conditions appear attractive for buyers, the sector faces evolving exposures, regulatory bottlenecks and heightened technical risks requiring continued discipline.

Total capacity available for mining liability placements has risen for the third consecutive year, boosted by new entrants and by existing markets increasing line sizes. Underwriters are viewing mining as a profitable addition towards ambitious gross written premium targets.

Mining property damage and business interruption insurance is seeing double-digit rate reductions, while international liability carriers are showing greater flexibility on price than on coverage.

Commodity-specific underwriting is becoming more pronounced. Precious-metal miners are benefiting from favourable terms on the back of strong pricing, while coal operations continue to face limited carrier interest and heightened scrutiny.

Emerging risks, including seismicity and flooding, are prompting tighter underwriting and new exclusions, according to Willis.

Flooding from extreme rainfall has become the most impactful natural hazard, while tailings management is under particular focus, with a Global Industry Standard on Tailings Management now a baseline expectation for underwriters.

Regulatory delays are becoming more common as complex ESG requirements slow approvals and prolong project timelines, the report observed.

Willis also flagged a growing underinsurance risk in some regions, where liability limits may not be keeping pace with inflation and increasing exposures.

Regional trends vary, the report acknowledged. In South Africa, for instance, property rates are softening while cyber risk is rising.

North America shows falling property rates of between 7.5% and 20%, alongside tighter casualty terms, while Canada faces stricter underwriting following heap-leach failures.

In Asia, pricing remains stable, supported by ESG and technology-driven risk mitigation.

Latin America is seeing growing captive use amid environmental and political risks.

In Australia and the Pacific, climate exposure and regulatory pressure are heavily shaping underwriting appetite.

William Fremlin-Key, global mining and metals leader at Willis natural resources, said the soft market offered opportunities for those who plan ahead.

“The mining insurance market is ripe for optimisation, but success hinges on proactive risk management,” he said.

“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.”

The report can be downloaded here.