Spotlight on Pacific
The Pacific market has moved into a softer phase, with increased competition among insurers and a noticeable rise in available capacity. Drivers of this include strong insurer appetite for growth, relatively low levels of major loss activity, and new entrants to the market. As a result, clients with well-managed risks and comprehensive underwriting information have benefited from favourable terms and pricing. Premium reductions commonly ranged from 10% to 20% for property and business interruption lines, particularly for accounts with minimal natural catastrophe exposure and strong risk management practices. Liability lines have seen modest rate decreases, although scrutiny remains for higher-risk commodities such as coal, as well as exposures involving PFAS contamination and seismic concerns.
Claims activity remained stable without large, market-altering events. However, insurers continue to monitor flooding, seismic activity, and failures of tailings storage facilities. Past catastrophic failures in tailings facilities mean insurers demand detailed engineering and monitoring data. While there have been no headline losses comparable to previous years, historical events are still referenced during renewal negotiations.
The competitive landscape has evolved with new entrants and expanded operations from established insurers, increasing overall capacity and driving rate reductions. This heightened competition benefits buyers but also raises expectations for detailed risk submissions.
In Australia, regulatory reforms have strengthened health, safety, and environmental standards. Updates to the Mines Work Health and Safety (Supplementary Requirements) Regulations have clarified requirements for risk management and workplace protection, while national WHS reforms have broadened incident notification duties, signalling an industry-wide move toward greater transparency. In addition, new obligations around climate-related financial disclosures, stricter controls on PFAS contamination, and enhanced tailings governance under GISTM are reshaping expectations. These changes elevate insurer requirements for robust WHS, environmental controls, and ESG reporting. Insurers now examine workplace safety protocols, mental health programs, and automated operations as closely as traditional engineering risks, increasing the level of scrutiny in renewal negotiations.
The growing use of AI-driven automation introduces new risk considerations for insurers. Autonomous haulage systems, robotic drilling, and predictive maintenance platforms can improve efficiency but also create exposure. Many AI-related initiatives in mining are still in their infancy, meaning the full spectrum of risks such as system failures, algorithmic errors, and integration challenges remain largely unknown. This uncertainty adds complexity to underwriting and may lead to evolving coverage terms as loss experience develops. Additionally, regulatory bodies are tightening standards for automated equipment and requiring robust governance frameworks. Insurers are scrutinising clients’ cyber resilience, AI governance, and contingency planning, making these factors increasingly important.
2026 outlook
The growing use of AI-driven automation introduces new risk considerations for insurers. Autonomous haulage systems, robotic drilling, and predictive maintenance platforms can improve efficiency but also create exposure. Many AI-related initiatives in mining are still in their infancy, meaning the full spectrum of risks such as system failures, algorithmic errors, and integration challenges remain largely unknown. This uncertainty adds complexity to underwriting and may lead to evolving coverage terms as loss experience develops. Additionally, regulatory bodies are tightening standards for automated equipment and requiring robust governance frameworks. Insurers are scrutinising clients’ cyber resilience, AI governance, and contingency planning, making these factors increasingly important.
Soft market conditions are expected to persist, supported by strong capacity and competitive pricing