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Mining Risk Review 2018 – Six key messages for the mining industry today

Risk & Analytics

September 5, 2018

Willis Towers Watson’s Mining Risk Review 2018 explores the biggest risks to the mining industry today.

Welcome to the 2018 edition of our Mining Risk Review. The mining industry has undergone mixed fortunes during the 12 months since our last edition, and while there had been some encouraging signs that commodity prices were on the rise in the early part of the year, things certainly look a bit bleaker as we approach the final quarter of 2018 and while capital expenditure in the industry is on the rise, there’s no doubt that managing mining industry risk remains as challenging as ever.

We are grateful to all the contributors to the Review, including Willis Towers Watson industry experts and external specialists from around the world, including Brett Forrest, Insurance Manager, South 32, and Cornelia Iacobacci, Head of Energy Products at Swiss Re Corporate Solutions.

The Risk Review highlights several other key issues facing the mining industry, including:

  • The impact of geopolitical tension on the US coal industry
  • The need to consider integrating Enterprise Risk Management into the industry’s risk culture
  • The need to pay greater attention to managing project delivery
  • The impact of some major (re)insurers’ retreat from coal underwriting
  • The rise in regulatory pressures in certain regions, such as Latin America
  • A possible change in mining insurance market dynamics, as Direct and Facultative (D&F) capacity becomes more restricted following recent losses

The Review also outlines key losses over the past five years, noting a reduction in major claims from 73 in 2017 to 30 in 2018 (to date). It also observes that the 2017 natural catastrophes have not had the dramatic impact on insurance market pricing that was anticipated 12 months ago.

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