Part of the series published with Mining Journal Global Risk ...

1 Global Risk and insurance GuideInsurance GuideInsurance Guide2014 Part of the Leaders series published with Mining Journalin association 119/11/2013 15:57S o Paulo London Paris Rouen Brussels Geneva Piraeus Dubai Hong Kong Shanghai Singapore Melbourne Sydney PerthLawyers for international A STRONG TEAMFIELDING A STRONG TEAMH olman Fenwick Willan is a Global law firm advising businesses engaged in the Mining sector. Our lawyers can provide 24/7 advice and support in the following areas:For further information about how we can help your business, please contact:n Risk Managementn Insurancen Reinsurancen Projectsn Joint Venturesn M&An Capital Marketsn Service Engagementn Regulationn Corporate Governancen Logisticsn Political RisksEuropePaul Wordley, EastSam Wakerley, Gordon, Jowett.

2 The [HFW] practice has become a thought leader in the Mining insurance world. Chambers 2014 ADVERT Miner Journal Risk and insurance Guide [A5 1pp] November 114/11/2013 13 115/11/2013 10:15 MediaPublished and distributed by:Aspermont Media, 4th Floor, 120 Old Broad StreetLondon, EC2N 1AR, United KingdomTel: +44 (0)20 7216 6060 Fax: + 44 (0)20 7216 6050 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. Any person who undertakes any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. 2013 Aspermont MediaISBN: 978-0-9546893-8-4 The author has asserted his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act the information contained in this document has been carefully compiled from sources believed reliable, no responsibility for its accuracy can be assumed and no representation of warranty expressed or implied is made as to their completeness or manager: Owen Raw-ReesDesigned and typeset by: Tim PetersCover design: Tim PetersPrinted and bound by: Stephens & George, Merthyr Tydfil, UK01, 119/11/2013 16:00 JLT rated best amongst BrokersA survey conducted by Standard & Poor s* with more than 100 companiesrated JLT higher than our peers in.

3 Understanding the clients business and need Standard of client service Policy wording advice and capability Proactivity Sector knowledgeAnd specifically from our Mining clients who a leading Global provider of risk and insurance solutions to the miningindustry, JLT has built a determined reputation for assisting our clients insecuring the coverage that is appropriate to their needs. For more information on any aspect of our Mining capability, please Head and shouldersabove the competition Their commitment toand delivery of serviceis outstanding Treated as a valuedcustomer rather than a source of revenue Jardine Lloyd Thompson is one of the world s largest providers of insurance , reinsurance and employee benefits relatedadvice, brokerage and associated services.

4 These services will be provided by the appropriate regulated business. Jardine Lloyd Thompson Group plc. The St Botolph Building 138 Houndsditch London EC3A 7AW. Tel +44 (0)20 7528 4444, Fax +44 (0)20 7528 4185. Company Registration No: 1679424. November 2013 267618*Standard & Poor s How Major Companies Select and Evaluate insurance Brokers, latest survey November 2011267618 Mining Journal Risk insurance Guide_A5 advert_v09_Layout 1 14/11/2013 15:03 Page 1 Part of the Leaders series published with Mining Journal 20143??????Legal: Holman Fenwick WillanUpdate on trends in the Mining corporate insurance market, including the unprecedented level of losses. Detail on the role of the lawyer in ensuring contract : J LTWhat clients should look for in their broker and at what stage of the mine cycle.

5 Risk transfer vs self- insurance . Overview of the placement process local, regional, : IMIUWhy is there a need for industry-specific skills within the leading underwriting companies? Good underwriting can only be based upon having the best information on : Swiss ReThe role of a Primary Insurer (Reinsurer in case of Captive Business). Striving for balanced risk sharing in order to achieve sustainable biographiesShort biographies about the companies and people who contribut-ed to and wrote the articles within this , 319/11/2013 16:01 International Mining Industry Underwriters (IMIU) is a specialist underwriting agency providing insurance for property, busi ness interruption and construction risks to Mining companies worldwide.

6 Established in London in 1995 Extensive portfolio of business around the world A broad range of insurance cover for all aspects of the Mining industry All commodities and all types of Mining covered Our specialist underwriters differentiate between the commonly held perceptions and stereotypes of Mining risk and the actual risk being managed by our clients Unparalleled risk engineering available from our team of engineers based throughout the world IMIU is owned by, and underwrites exclusively on behalf of, Inter Hannover, a non-life insurance company, that is in turn wholly owned by Hannover Re (the World s 3rd largest reinsurer). The rating agencies most relevant to the insurance industry have awarded Inter Hannover very strong insurer financial strength ratings (Standard & Poor's AA- "Very Strong" and Best A+ "Superior").

7 IMIU, 10 Fenchurch Street, London, EC3M 3BE, UK Tel: +44 20 7015 4321 | Email: | Web: Leading Insurers of Mining Businesses Worldwide 114/11/2013 16:02 Part of the Leaders series published with Mining Journal 2014 Holman Fenwick Willan5 The attitude to insurance of organisations in Mining and other commercial sectors has changed in the last decade. The development of knowhow and increased awareness of risk management and corporate governance has seen a shift in insurance buying, and insurance is perceived to be an essential tool for improved corporate governance and business continuity. In this article, we will consider the shift in attitude and highlight what considerations are necessary to ensure contract and coverage certainty.

8 We will also suggest some ideas to ensure effective claims handling processes that could help minimise disputes between policyholders and insurers, and to identify coverage issues early to avoid protracted and distressed in the Mining sectorThere has been an unprecedented level of losses in the Mining sector in recent times. These losses were caused by a series of severe weather events and natural catastrophes such as floods, earthquakes and cyclones as well as operational incidents, including major equipment break-downs. The effects on the Mining sector and associated industries, including suppliers and customers has been significant and complex. As key production and supply chain points were affected, interruptions were often lengthy and significant.

9 In some cases, reduced output has been argued to have caused price spikes in the Global cost of commodities. This gave rise to coverage issues regarding the calculation of business interruption claims and other issues. The losses also gave rise to increased claims and protract-ed coverage disputes. insurance complexity: The unprecedented losses have increased awareness at a corporate level of the importance of insurance and the need to get the cover right. This is particularly true for business interruption insurance . However, the complicated way in which Mining houses get their product from mine to market makes such claims, when they happen, extremely complicated. This in turn makes the claim investigation process complex and time consuming.

10 This has led to Mining houses seeking to simplify the basis on which the indemnification of such losses is calculated, so as to reduce the frictional cost of claims that is the time and resources required to deal with such an investigation, and to carry out increased due diligence on service providers and suppliers. Rising costs of insurance : Commodity prices have increased considerably as a result of the huge demand from China and India for raw materials. Despite the economic downturn and consequential reduction in demand for materials, commodity prices still remain historically high. This has increased the financial exposure of Mining companies if their business is interrupted, and contributed to the rising cost of business interruption claims and insurance in the Mining sector.