Liability
The liability market is shifting, and the movement is creating opportunity. As the sector is evolving, so is the market. Capacity is increasing, rates are declining, and coverage is broadening. However, the expectations around risk management haven’t eased, the continue to be the key to unlocking the best outcomes.
Capacity is increasing, rates are declining, and coverage is broadening.
2025 looks to be another consecutive year of positive Lloyd’s casualty underwriting results, due to the absence of market wide major losses. This had a positive impact on the capacity available with existing insurers seeking to increase their market share and new capacity joining the market, such as Munich Re Syndicate, Sevanta, Faraday and Rokstone.
Different factors can influence renewal outcomes and how much competition can be generated; mainly, risk quality, and geographic footprint. The market continues to consider each risk on its own merits, and organisations that can articulate their risk positively will achieve the best results.
Key items insurers are focused on when considering risks include:
Tailings: Continued focus on tailings management and adherence to the GISTM
Extreme weather events: In some regions, Australia for example, we’ve seen an increase in the frequency and severity of extreme weather events. Insurers need to understand how exposure is managed, particularly in relation to Tailings facilities and design enhancements
Underground exposure: Focus on the max number of individuals below ground at any given time
Contractor screening: Rigorous due diligence checks when using third parties
ESG credentials: Organisations need to evidence the implementation of strong ESG principles. This continues to influence insurer risk selection
2026 outlook
Mining remains a key growth area for insurers, underpinned by rising demand for critical minerals. These materials are essential to the clean energy transition, presenting new interesting opportunities across the insurance market.
However, a significant market wide loss could cause a shift, tipping the scales once again.
Ahead of renewal organisations should:
- Explore different program structures and alternative risk transfer solutions
- Be aware of the impact of inflation and aligning the limits purchased to avoid underinsurance
- Consider using potential premium savings to purchase additional limit whilst capacity is available
- Consider the value of maintaining longstanding market relationships when capitalising on competition
- Be open to lucrative long-term agreements (LTAs) which are available for organisations that desire program stability
- Select reputable lead insurers who set the tone for the follow markets, particularly for more complex placements
- Leverage cross-class insurer relationships
Challenge the status quo to ensure you are seeing true value from the favourable market conditions.
Now may be the time to consider using potential premium savings to purchase limit whilst capacity is available.
These soft market conditions present an opportunity to purchase additional cover to protect your organisation from the changing regulatory environment. Mining organisations are increasingly purchasing Environmental Impairment Liability (EIL) coverage, as the industry has high environmental exposure. The regulatory environment is tightening, and the financial consequences of even a small pollution event can be significant. EIL solutions provide additional protection in areas that traditional liability policies cannot, for example gradual pollution cover.
How to get the most from the market
To secure optimal results at renewal you should:
- Engage with your broker early to align expectations and strategy
- Plan for meaningful market engagement ahead of renewal, utilising the opportunity to positively present your risk to insurers
- Compile robust underwriting submissions, with a focus on updated TSF risk engineering reports
In the mining sector, subtle shifts in risk perception can have a material effect on the results achievable.
Liability risks in mining are constantly evolving, driven by continued focus on risk management, ESG, climate change, inflation, and technological transformation. The current market presents an exciting opportunity for organisations who can demonstrate comprehensive management and oversight of their risk exposures. When organisations that are focused on growth, resilience, and stakeholder confidence are partnered with a specialist broker like Lockton, together we can unlock the best solutions from a market that remains complex but favours buyers.
Rather than asking if we have reached the bottom of the cycle, the more pertinent question is how mining companies can leverage conditions to secure broader coverage, sharper pricing, and long-term stability, converting the market momentum into meaningful insurance program enhancements.