Spotlight on Asia
Asia’s mining market enters 2026 stable, with favourable conditions for buyers amid increased insurer capacity and targeted innovations. The sector, emerging from years of volatility, is shaped by three core trends: sustained rate moderation for well-managed risks, deepening ESG integration in underwriting, and accelerated adoption of technology-enabled risk mitigation. As mining companies navigate commodity price fluctuations and natural catastrophe exposures, insurance solutions are becoming more tailored, resilient, and aligned with regional operational realities.
2026 outlook
We expect to see continued flat-to-modest reductions in premiums for key lines — property, casualty, and D&O liability — driven by ample capacity from both local and international insurers.
Some of the key trends that will shape 2026 include:
- ESG as an underwriting priority: expected tightening of ESG disclosure draws closer, with insurers favouring clients that demonstrate transparent carbon tracking, tailings management aligned with the Global Industry Standard on Tailings Management (GISTM), and rigorous water stewardship practices. Green insurance solutions, such as coverage for renewable energy integrations and decarbonisation initiatives, will gain traction as miners pursue them.
- Technology-driven risk mitigation: real-time monitoring, AI predictive analytics, and satellite-based tools (e.g. geospatial imaging) are becoming standard for risk validation. Insurers increasingly offer premium incentives for companies adopting these technologies to reduce operational downtime and environmental liabilities.
- Alternative risk solutions: parametric insurance and captive structures will grow in popularity, addressing gaps in traditional coverage — such as business interruption from extreme weather or supply chain disruptions. This shift reflects organisations need for more flexible, cost-effective risk transfer amid regulatory complexity.
Competition intensifies for low-hazard operations like open-pit mining, with eligible buyers securing rate reductions of 5–10%. However, pricing remains sensitive to natural catastrophe risks, particularly in typhoon-prone regions (e.g. the Philippines) and seismic zones (e.g. Indonesia). Insurers are increasingly flexible on terms for those with robust risk engineering, though underground mines and operations without local ownership still face limited appetite from domestic markets.
Regulatory oversight will tighten across Asia, with stricter requirements for environmental liability coverage and mine closure guarantees. China’s domestic market remains focused on risks with Chinese ownership, offering tailored policies with consulate coordination and Mandarin support for expatriate workers. Indonesia will see stable pricing above statutory tariffs, with expanded co-insurer participation enabling broader coverage for high-value projects. In Singapore, long-term agreements (LTAs) will remain attractive, offering up to 10% rate reductions for committed buyers. 2026 presents opportunities to optimise insurance programs by leveraging soft market conditions and demonstrating strong ESG and risk management credentials. Insurers will deepen their technical expertise in regional hazards, while brokers will play a critical role in bridging local regulatory nuances with international capacity. As climate risks and digitisation reshape operations, partnerships between miners, insurers, and tech providers will be key to building resilient, sustainable mining ecosystems in Asia.
2026 presents opportunities to optimise insurance programs by leveraging soft market conditions and demonstrating strong ESG and risk management credentials