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Willis, a business of global advisory and broking firm WTW, has identified current insurance market conditions as an opportunity for mining companies to reassess their coverage and strengthen their approach to risk management.
In its Mining Risk Review 2026, the company reports that insurers continue to offer significant capacity, with competition helping to maintain favourable conditions for buyers and putting pressure on rates.
The findings come as demand for critical minerals supports investment across the mining industry. Strong commodity prices have encouraged companies to pursue new developments, establish partnerships and adopt new technologies.
However, Willis points out that these opportunities coincide with a broad range of operational and strategic challenges, including political uncertainty, climate-related events, cyber incidents and vulnerabilities in global supply chains.
Willis says mining businesses can use the current market environment to review their insurance arrangements while preparing for changes in risk exposure and future insurance costs. The company highlights how risks increasingly overlap, with incidents affecting one operation, supplier or transport route potentially creating wider consequences for businesses and their supply networks.
The report finds that competition between insurers remains strong across major areas of mining insurance, supported by healthy insurer profitability and available capacity. Property insurance placements are often attracting more capacity than required, while worldwide liability capacity has risen for the eighth consecutive year to more than USD $1.2 billion.
Supply chain exposure is also receiving greater attention, particularly where mining operations depend on a limited number of critical mineral processors, refining facilities, logistics providers or specialist suppliers. Willis identifies these concentrations as potential sources of disruption and emphasises the importance of understanding dependencies beyond individual mining sites.
The company also highlights the potential insurance benefits of responsible mining practices. Insurers are increasingly considering evidence of risk management standards and operational controls, including those associated with the Global Industry Standard on Tailings Management (GISTM). Willis notes that such frameworks can help underwriters assess the quality of risk controls, the management of potential incidents and the assumptions used when estimating recovery following a loss.
Tailings storage facilities remain an important factor in insurance assessments. Although Willis reports greater willingness among insurers to cover facilities with effective management arrangements, these sites continue to face close examination in both property and liability underwriting. The company identifies robust governance, engineering supervision and transparent disclosure as important elements of effective tailings risk management.
Digitalisation is creating further challenges for mining operators, according to Willis. The growing use of connected equipment, automated processes, artificial intelligence and integrated information and operational technology systems may increase the potential for cyber incidents to disrupt production and other essential activities. The report therefore identifies cyber security and operational technology protection as important considerations for senior management and boards.
Willis also points to the influence of geopolitical developments and climate-related hazards on insurers’ decisions. Underwriters are assessing factors including interruptions to supply chains, business interruption exposure, natural catastrophe preparedness and the adequacy of asset valuations. Government policies, tariffs and export restrictions may also affect mining operations and the risks associated with moving critical minerals between markets.
Conditions differ across regions, according to the review. In North America, property insurance rates continue to soften, while mining investment and expansion interest remain evident in Canada and Latin America. South Africa continues to benefit from insurer profitability and competition. Across Asia, underwriters are paying closer attention to supply chain interruption, while buyers in Australia and the Pacific region continue to encounter favourable insurance market conditions.
Will Fremlin-Key, Global Mining and Metals Leader, Willis Natural Resources, commented: “Mining companies are enjoying some of the most favourable insurance market conditions seen in recent years, but resilience remains critical. Today’s risks are increasingly interconnected, whether that is geopolitical disruption, critical supply chain dependencies, extreme weather events or cyber threats.
“As risk profiles continue to evolve, the companies that are best positioned for long-term success will be those that can demonstrate not only that they have a deep understanding of their risks, but that they have the discipline, governance and adaptability to respond pro-actively to shifting conditions.”
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