Reducing the impact of large losses in mining

27 July 2015

Losses in the mining industry can be very significant, consuming valuable time and resources – especially when insurance does not respond as expected. While many of the causes of large losses are inescapable, their effects can be mitigated and risks transferred effectively.

The industry is adept at doing this; mining companies have long taken a sophisticated approach to managing risk, and this sophistication is only increasing as firms – both large and small – take an ever more proactive approach to risk reduction and loss mitigation.

In this white paper, we look at how mining companies can take their risk reduction and loss mitigation procedures to the next level. To do this, we consider the following:

Major losses: common causes – frequent contributors to major mining losses, backed up with actual examples

Building resilience – how to use loss planning and scenario testing to minimise exposures

Getting insurance right – how to ensure that insurance is fit for purpose, as well as an update on current market conditions

Taking action – key learning points and suggested actions

Adverse weather, the remoteness of many mining operations, supply chain disruption, human error, cyber risk, and environmental and safety investigations all feature in the claims highlighted in this whitepaper. We explore how the impact of such risk factors can be minimised through loss planning and stress testing of insurance policies, which is becoming increasingly essential.

Another recurrent theme is the degree to which insurance cover does not always mirror the actual claims experience. We’ll outline how gaps in cover, inappropriate wordings and insufficient limits can be avoided.

Finally, we look at how the current soft insurance market conditions and benign claims environment present an excellent opportunity for mining companies to prepare for large losses in future, including capitalising on the breadth of cover currently on offer.

Download reducing large losses mining whitepaper

For further information, please contact Simon Delchar, CEO, Property, Casualty, Mining & Power on +44 (0)20 7466 6226