LONDON, Sept. 10, 2018 (GLOBE NEWSWIRE) -- Willis Towers Watson (NASDAQ: WLTW), a leading global advisory, broking and solutions company, today launched its Mining Risk Review for 2018, stating that rising geopolitical tensions impacting on supply chains are increasing volatility in the sector.
In addition to the repercussions of these tensions, the annual Risk Review highlights several other key issues facing the mining industry, including:
- The need to consider integrating Enterprise Risk Management into the industry’s risk culture
- The need to pay greater attention to managing project delivery
- The impact of some major (re)insurers’ retreat from coal underwriting
- The rise in regulatory pressures in certain regions, such as Latin America
- A possible change in mining insurance market dynamics, as Direct and Facultative (D&F) capacity becomes more restricted following recent losses
The report highlights the increase in geopolitical tension, including environmental and social pressures on mining companies. However, global coal consumption remains at well over 5bn tons, with China accounting for nearly half of this figure, fuelling demand.
Graham Knight, Head of Downstream Natural Resources in London, commented:
“This is a critical time for the mining sector. Although there were encouraging signs of a rise in commodity prices earlier this year, it is clear that things are looking bleaker for the rest of 2018. Meanwhile increased geopolitical tensions are clearly posing significant uncertainty for the industry, as is the retreat from thermal coal risks by certain sectors of the insurance market. And as D&F market capacity becomes more restricted, our mining clients may need to look for alternative solutions if they want to mitigate any future volatility in insurance market pricing.”
The Review also outlines key losses over the past five years, noting a reduction in major claims from 73 in 2017 to 30 in 2018 (to date). It also observes that the 2017 natural catastrophes have not had the dramatic impact on insurance market pricing that was anticipated 12 months ago.
For more information and to access the report, please access https://willistowerswatson.turtl.co/story/miningriskreview2018online
About Willis Towers Watson
Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has over 40,000 employees serving more than 140 countries. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com.
Media contacts
Sarah Booker +44 (0)7917 722040
sarah.booker@willistowerswatson.com