Mining insurance market sees rate drops as new carriers and capacity enter

The global mining insurance market is undergoing a period of accelerated softening, with new entrants and expanding coverage forcing rates down, according to Willis, the broking arm of WTW.

In its Mining Market Review report, released 8 October 2025, the firm reported that the total capacity available for mining liability placements had increased for a third successive year, attributable to both the emergence of new entrants and the increasing of line sizes at existing insurers.

Mining property damage and business interruption policies both saw rate reductions of over 10%, with international liability carriers likewise showing flexibility on price.

The report also highlighted a growth in commodity-specific underwriting, with the precious metals and mineral mining markets “attracting favourable terms due to bullish pricing”, while the coal market conversely faced “limited carrier interest and heightened underwriting scrutiny”.

Despite underwriters viewing the mining industry as a profitable sector, the report warned that increased regulatory demands and the emergence of risks such as seismicity and flooding could make the market a complicated prospect.

Risk management

William Fremlin-Key, global mining and metals leader at 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.”