Political violence
In the mining sector, there has been a continued reliance on the London markets for the placement of Political Violence & Terrorism (PVT) insurance. Despite this, the market has softened over the last 12 months, favouring buyers. Some areas have seen more significant rate reductions, such as the Latin American (LatAm) Strikes, Riots & Civil Commotion (SRCC) placements, where we have seen some reduction between 20-50%.
Market conditions have been driven by increases in available capacity and a relatively stable 2024/25 period, with no market moving global political violence events. This means that insurers have relaxed their stances challenging occupancies and on Terms & Conditions.
We have seen growth in capacity offered by London market insurers, and MGAs, driving competition between insurers and applying downward pressure on rate. This has been compounded by local insurers / cedants retaining more risk within their treaties rather than finding reinsurance in the London market.
The threat of civil unrest in the mining sector remains prevalent within the PVT market. Driven by the growth of illegal mining activities, particularly in LatAm. Globally, we have seen protests in Chile, Indonesia, Peru, Serbia, and numerous African jurisdictions. These protests have frequently been driven by land rights conflicts, pollution concerns, and opposition to expanding extraction for clean-energy supply chains.
Mining companies are increasingly impacted by denial of access, loss of attraction, property damage, and business interruption arising from civil unrest. In response to this we have developed proprietary Non Physical Damage and Impairment of Access forms available for our clients.
2026 outlook
We expect to see continued escalation in PVT risks, with continued need for adequate insurance to protect companies’ interests. Organisations should be cautious of heightened loss activity and anticipate further interruption of business activities.
We anticipate that more mine operators will look to procure SRCC cover via the London market due to the surging demand for natural resources. Despite increased interest in purchasing cover and expected escalations of PVT events, we expect the market to remain soft as recent insurer profitability means they will be able to absorb these changes.
Despite increased interest in purchasing cover and expected escalations of PVT events, we expect the market to remain soft.