It is a buyer’s market for insurance in the mining sector, according to broker Willis.

Abundant capacity, sustained competition and continued downward pressure on rates feature worldwide, the company’s annual Mining Risk Review says.

Insurers’ profitability is strong and placements are often oversubscribed as “capacity continues to flood a saturated ... market”.

Demand for critical minerals has lifted commodity prices, encouraging miners to invest in new projects and technologies, Willis says.

In Australia and the Pacific region, premiums are falling and insureds can get broader coverage.

Sophisticated buyers in the region are prioritising contract certainty, claims performance and sustainable insurer partnerships, while mining services and casualty outcomes increasingly diverge according to risk quality, governance and data.

Willis global mining and metals leader Will Fremlin-Key says miners are enjoying some of the best insurance market conditions in years. However, specialist mining underwriters are becoming more selective, looking at detailed technical data, risk quality, engineering standards, tailings information, valuation adequacy, business interruption assumptions and coverage specifications.

Some have pushed back with reduced offers of capacity when they consider exposure “has deteriorated beyond the point of acceptability”.

Supply chain resilience has emerged as a strategic risk priority, and cyber and operational technology risks continue to grow, the report says.

Responsible mining can be an insurance advantage and underwriters increasingly look at initiatives such as the Global Industry Standard on Tailings Management to better understand exposure.