Spotlight on LATAM
Property and Construction
Through 2025, the mining market in LatAm remained relatively stable, with soft market conditions supported by ample capacity and competition between insurers. Most major property and construction programs remain reliant on facultative reinsurance markets in London and Europe, with some new entrants to this market from Miami.
Recently, insurers have placed less emphasis on ESG considerations and have shifted their focus toward operational risk management, maintenance practices, and, in some cases, commodity price volatility.
These conditions have been driven by increased insurer competition in certain lines of business, notably Third Part Liability (TPL), D&O and Marine Cargo. In Property, while local capacity has not increased materially, enhanced appetite from international markets has been the key driver behind premium reductions or, at a minimum, flat renewals. We have seen traditional property insurers looking at mining risks to make up income lost to a drop in general property premiums. In some cases, the traditional mining markets have followed these premium reductions, but in many cases they have not followed changes to traditional clauses mining clauses.
There have been some isolated climate related claim events, particularly heavy rainfall and windstorms. These events have affected the broader market rather than the mining sector specifically. In Peru there have been some significant Political Violence losses in the last 12 months mainly in northern Peru.
As time has passed since the tailings dam catastrophic losses in Mariana and Brumadinho, insurers have shown increased flexibility, particularly for liability coverages. On the PD / BI side, insurers continue to focus on machinery breakdown, hot works and on replacement times for key pieces of equipment.
In Brazil a major regulatory development has impacted the market since mid-December 2025. For the first time, insurance activities are governed by a dedicated insurance law, affecting claims procedures, service level agreements, reinsurance structures, and other core aspects. Although the law has been known since late 2024, its full implications are still being assessed. One impact observed is the requirement for independent limits for defence costs and loss mitigation in liability policies, which were traditionally shared with material damage and bodily injury limits. This change may drive demand for higher overall limits, particularly for mining companies with significant exposure to defence costs, loss mitigation, material damage, and bodily injury.
2026 outlook
The market is expected to remain broadly soft to stable, supported by continued appetite and capacity from international insurers, albeit with more modest reductions than those we are currently seeing.
Some uncertainty remains regarding the practical impact of the new insurance law in Brazil on complex coinsurance and reinsurance arrangements. For TPL and D&O, limits are likely to need adjustment to comply with the new legal requirements, particularly to ensure that defence costs and loss mitigation expenses are not eroded by indemnity claims.
Across the region, with the capacity available, there is an opportunity to increase earthquake cover and tailings sub limits, if adequate underwriting information is available.
How to get the most from the market
Companies should:
- Closely monitor wording changes and differences between insurers in how key provisions of the law are implemented, particularly in those countries where there have been regulatory changes.
- Engage brokers early for support determining the appropriate limits, which is not always straightforward, especially for those listed in the US or Canada and / or with tailings dam exposures.
Those with strong loss records and effective risk management practices are likely to benefit from continued competitive pricing.