Property
Through 2025 the property market was favourable for clients, with average rate reductions between 10% and 15%.
These soft market conditions were driven by increased capacity and appetite from both mining-specific insurers and the broader property market. There has been some recent claims activity, including a significant event in Indonesia in 2025 with an estimated quantum of USD 700m, but continuing profitable results for insurers mean there has been no adverse effect on rates.
The above graph shows rate changes in the property (re)insurance markets over time. Continued decreasing (re)insurance rates suggests that the market will continue to be favourable for buyers.
The additional available capacity has mainly come from increased appetite of existing property insurers to write mining business, mainly in the Lloyds and MGA space. Insurers still require detailed underwriting information, but some newer markets are more flexible in their approach.
Insurers often react to loss events, with recent examples around heap leach pad facilities, mining induced seismicity and underground flooding TSF’s continue to be an area of insurer focus including progress towards the GISTM.
2026 outlook
With reinsurance treaties renewing with double digit rate reductions the market will remain competitive. The broader property market is expected to post strong results for 2025 with a mild catastrophe season and the continued push for growth will drive further competition. In the mining space there’s potential for additional capacity from Lloyd’s Syndicates and MGAs coupled with increased appetite from incumbent players.
There are opportunities to improve insurance programs. Policy limits need to be continually reviewed against potential exposures, especially for those commodities that have seen significant price increases in the last year or more e.g. gold. Coverage enhancements are considered by insurers, with buyers able to resist deviations from core coverage and restrictive conditions. We expect to see downward pressure on retention / deductible levels and this to come in to play in renewal negotiations.
Insurers continue to scrutinise BI declarations. They may apply commodity price caps (typically 15% - 25%) and / or BI Volatility Clauses (10% - 15%). As well as reviewing overall policy limits, the effect of these caps / clauses on potential claim payments needs to be considered.
How to get the most from the market
Organisations should continue to produce thorough risk submissions for the market, including the latest risk engineering reports, updates on risk recommendations, and comprehensive tailings management information.
In the short term, there is potential for reduced costs coupled with improved terms and conditions. Medium to longer term, organisations should consider their continuing market relationships and balancing an optimal program now with longer term commitments through the insurance cycle.