According to Marsh, in Peru, rates in the property insurance market continued their upward trend but with progressively smaller increases, maintaining the same direction as the international market.
Insurance brokerage firm Marsh conducted an assessment of the mining sector in 2023 regarding mining property insurance, highlighting that in Peru this market rose to nearly $120 million. Regionally, the figures reached $350 million, and globally, they surpassed $1,300 million.
As per Marsh, in Peru, rates in the property insurance market continued their upward trend but with progressively smaller increases, staying in line with the international market, with up to 5% increases for companies that did not file claims.
Regarding insurance coverage for the construction of mining projects, the insurance brokerage observed rate increases of around 5%, compared to the 50% to 100% hikes seen in 2022.
This shift reflects a trend towards the stabilization of property insurance market rates in the country and globally.
Finally, it highlighted three issues that could impact the sector. First, climate change, evidenced by El Niño and La Niña phenomena; with droughts threatening infrastructure, social environment, and water supply. Second, financial risk, including inflation and increases in expenses and energy costs.
Lastly, the technological aspect, while promising with the incorporation of artificial intelligence, also presents cybersecurity risks that require attention along with the challenge of finding human capital with the right skills for a changing industry.
