This week, Insurance Day has published an article by Matthew Johnson on the unsustainable risk of tailings dam exposure for insurers. Matthew Johnson is Head of International Mining Industry Underwriters (IMIU), which underwrites as part of HDI Global Specialty SE.
In the article, Matthew talks about the recent Córrego do Feijão disaster in Brazil, the risk of failure, the increase in size of these dams and thus the increase in financial and reputational cost of failure, and the subsequent importance and value of having a panel of specialist mining insurers on a programme.
“Our engineers estimate there are on average four tailings dam failures globally per year. That has simply not been rated for, and against a reduced premium pool due to the soft market, the exposure has the potential to really hurt.” explains Matthew.
“Mining companies will have to demonstrate they have a grip on the maintenance of both old and new dams if they are to secure cover for tailings storage facilities.
The insurance industry and clients will have to come around to the exposure these dams present and evolve cover and terms to protect insureds, but on a sustainable basis for the insurance market.”
We underwrite Property and Business Interruption risks and Construction projects of mining companies throughout the world under the IMIU brand. The skills and services offered by IMIU’s engineering team are unmatched within the insurance industry and their risk improvement advice is highly sought after by our clients.
Read the full article with an Insurance Day subscription here and see more information about our mining underwriting portfolio here.