Mining Market Update 2018
The latest Mining Market Update features in-depth analysis and commentary on current global insurance market conditions for mining risks.
MINING
Having an insurance programme that identifies, manages, and transfers risk can enhance financial and operational resilience and help maintain business viability across the entire mining lifecycle.
RESEARCH AND BRIEFINGS
The global mining industry faces many challenges: softer commodity prices, cost-management challenges, reduced access to finance, and increasing expectations around social, economic, and environmental engagement with host communities and regulators. Meanwhile, investors demand operational rigor and capital discipline to ensure appropriate returns from capital-intensive assets and projects.
In an industry where losses may be few, but significant, Marsh’s Mining Practice helps you to avoid, manage, and transfer risk across the entire mining life cycle, from capital raising to mine closure.
Our global team of industry experts understands the risk challenges faced by the mining and mineral processing industry, and are ready to work with you to help you reduce the probability and potential impact of a loss event and ensure your insurance programmes provide economic protection.
The result of Marsh’s mining industry expertise: robust, cost-effective risk management and risk transfer programmes that enhance the resilience of your business.
Claims Management
Governments, Mine Owners, shareholders, media, and the public are scrutinising your ability to deal with unforeseen events and crises. It’s therefore business critical to quantify losses and maximise insurance recoveries in a timely manner.
At Marsh, we understand the challenges that loss situations produce: catastrophe management, lost sales, difficulty sourcing equipment, complexity of measuring dollar cost of business interruption, and related costs.
Our claims practitioners are well versed in different mining techniques and associated processing activities, and with more than 100 claims professionals around the world have served mining clients, we are ready to help you in every mining centre.
Cyber Risk
Cyber security has shown the highest growth of concern among mining companies, reflecting both the increasing use of networked systems in all aspects of operations, from mining through processing to marketing, and an increasing awareness of the vulnerabilities such systems represent. The remote monitoring of individual plant items by manufacturers and suppliers is now commonplace (the leading providers of gearless mill drives and draglines, for example, provide telemetric monitoring solutions) and mineral processing operations, and downstream material handling operations are now increasingly controlled from off-site centers. Risk exposure to operations, combined with data privacy threats and fraud, led to more than a third (35%) of companies reporting cyber security concerns as a principal risk in 2015, compared with just 9% in 2005*.
*Marsh Report: Mining Risk Reporting: Emerging Trends in an Evolving Landscape
Mergers, Acquisitions and Divestments
Corporate activity is returning to the mining sector, as mining companies respond to changing outlooks by optimising and focussing their project and operational portfolios and right-sizing their balance sheets – and as funds form or allocate significant capital to exploiting the opportunities that now exist in the sector.
Marsh’s Private Equity and M&A (PEMA) Practice provides risk and insurance advice that complements traditional financial, legal, and commercial due diligence. Our advice enables both buyers and sellers to better understand the risks in any given transaction and factor them into negotiations and the pricing of a transaction.
Risk Consulting
Marsh Risk Consultants attended more than 150 mining site engagements in 2014. With more than 70 years of experience of working with clients in the mining industry, Marsh Risk Consulting (MRC) provides advice, analytics, tools, research, and solutions for a wide range of risk issues. Our goals are to build the resilience of your business by:
- Reducing the frequency of risk events.
- Reducing the impact of risk events.
- Helping you better understand your risk profile and find appropriate protection.
Our dedicated professionals meet your company’s day-to-day needs. MRC offers the following services to help you manage your risk exposures:
- Risk engineering and risk control (including specialised mining breakdown risk control services).
- Strategic risk management.
- Enterprise risk management (ERM).
- Supply chain management.
- Business analytics and risk modelling.
- Crisis management.
- Asset valuation.
- Business continuity management (BCM).