Insurance renewals in the mining industry in 2009 saw rates generally remain flat or decrease—in some cases up to 10 percent—especially when competition was introduced or programs were restructured. A number of new insurers have expressed interest in actively participating in the mining segment. The added capacity has resulted in increased competition and a slight, although perhaps brief, shift toward a buyer’s market in early 2010. Clients with a positive loss history achieved pre-renewal goals that likely included a reduced rate, as well as favorable clarifications or outright coverage enhancements.

Looking Ahead

Clients were focused on premium expense control in 2009; in 2010, that emphasis will likely shift to improving coverage terms and deductibles. With reduced exposure, clients generally should not reduce their underground physical damage and business interruption (UG PD/BI) sublimits given the competitive nature of the market. Once the market turns, insureds that had made such a reduction would be at a disadvantage in increasing UG PD/BI sublimits.