The global mining insurance market: Towards a Turning of the Tide?
Commenting on conditions in the mining insurance market is somewhat akin to the playing of a scratched record on an old gramophone belonging to your grandmother: a repeated mantra, year on year, of increased capacity, more competition, reduced rates and dwindling premium income streams. In last year’s edition of the Review we highlighted the main reasons for the continual excess supply of capital which has plagued the (re)insurance markets for some time now and while there is certainly no let-up in this excess supply we do at least sense that things may be beginning to change, at least in some areas of the mining portfolio.
A large number of parallels can be drawn between the mining and insurance industries at present. They have both experienced a prolonged downturn, with margins disappearing and oversupply persisting. Some consolidation has occurred and they have either neared or seen the bottom of the cycle. While the mining industry is ahead of the insurance industry in terms of pricing recovery, we see that trend emerging in the insurance market for miners as well in the second half of 2017.
Read the full report by Willis Towers Watson below.