Mining hotspots: Key global trends 2025

Mining insurance markets are shifting globally. But while pricing is down and capacity is up, key risks rooted in climate change and natural catastrophes endure.

How 2025 mining market trends are playing out in critical geographies

South Africa

South African insurers generally posted strong underwriting profits on property business for 2024. The property market is now firmly in a softening cycle. Rate reductions are being negotiated on renewals unless the claims experience is poor or there are risk management concerns. However, deductibles/retention levels required by insurers are continuing to hold firm at this stage.

The increase in frequency and severity of nat cat events across South Africa continue to be a core focus for insurers and reinsurers. There has been a small shift in attitude towards providing buy back cover for nat cat perils as well as fire and explosion, whether causing damage to the insured’s property or the suppliers property. 

North America

The U.S. mining property insurance market is undergoing a notable shift as more domestic carriers expand their appetite for mining risk, intensifying competition. The increased capacity has driven rates downward (-7.5% to upwards of -20%), as insurers strive to protect and grow market share in an environment where competitive positioning is key.

Pricing still hinges on strong loss control measures and robust engineering practices. Carriers continue to reward operators that demonstrate disciplined risk management underscoring the technical rigor and safety standards remain the foundation for securing optimal terms.

Canada

There is a continued flight to quality risks, with insurers looking to maintain and/or grow their premium. Still further markets are competing for mining risks by either broadening their underwriting appetite or acquiring underwriters with technical and/or mining underwriting expertise. These soft market conditions are driving pricing down.

Key trends:

• After catastrophic heap leach pad failure at the Eagle Gold Mine in Yukon in June 2024, insurers are now requiring engineering reports and coverage is often restricted.
• The Mount Polley tailings collapse in 2014 continues trigger stricter sudden & accidental (S&A) pollution definitions, higher retentions and tailings-specific questionnaires required to obtain coverage. There is also a growing trend in the use of EIL insurance in the mining sector to provide “ground-up” pollution coverage.
• As Canada experiences hotter and drier summers, mining companies are increasingly at risk from wildfires, meaning contingency and response plans need to be reassessed.

Asia

Emerging from years of volatility, Asia’s mining insurance sector has been stable in 2025. Premiums for key lines of cover such as property, casualty, and D&O liability are showing modest reductions due to increased insurer capacity and improved risk modeling.

Pricing remains sensitive to natural catastrophe exposures and commodity price fluctuations. Nevertheless, the mining insurance landscape in Asia is continuously becoming more resilient and buyer-friendly, with increased capacity and tailored coverage options.

Latin America

One of the most relevant shifts in the Latin American mining insurance market is the growing pressure around environmental liability and mine closure guarantees. Insurers are also showing reduced appetite for high-hazard mining risks, especially in jurisdictions with political or regulatory volatility. This is driving a shift toward alternative risk transfer mechanisms, including captives and parametric solutions, as mining companies seek greater control and flexibility.

Overall, the market is evolving toward more integrated, ESG-aligned risk strategies, requiring brokers and insurers to deliver deeper technical expertise and proactive advisory.

Australia and Pacific

The Australian general insurance industry reported strong profitability in 2024, largely driven by increased investment returns rather than underwriting profits. This has resulted in a noticeable shift in appetite and increased competition, with new insurer capacity entering or re-entering the Australian market. The Pacific region, saw an approximately 10% decline in composite insurance rates in Q2 2025, indicating a more competitive environment.

There is evidence that the market is continuing to segment risks along the lines of risk profile and loss history. Insurers are starting to show a willingness to underwrite commodities that were out of favour as competition for premium heats up, especially for well managed risks.

To find out more about how regional trends are impacting the mining sector, download the full article below.