NU Online News Service, Feb. 29, 4:03 p.m.EST

ST. LOUIS—Mining is viewed as a high-risk industry, butmining in North America is safer than some other industries, suchas agriculture and lumber, in terms of the number of claims,according to experts.

The biggest challenge in the industry for underwriters is a lackof understanding of the true exposures, says Chandler Cox,president and chief executive officer of American Mining InsuranceCo.

Cox was one of several casualty underwriting experts speaking ona panel yesterday at the 2012 North American Mining Summit, hostedby Kansas City, Mo.-based insurance broker Lockton. The summit had140 attendees representing 56 mining companies, according toLockton.

William Rabl, chief operating officer with ACE Risk Management,notes that because exposures, including coal dust, are challenging,examining clients' loss history and safety record is critical.

Robert Rheel, executive vice president, sales distribution andmarketing with Aspen notes that a challenge in the industry ispredictability. “Insurers look for this,” he says, pointing tolarge losses and black lung disease regulations.

Stephen Blankenship, assistant vice president, national miningpractice leader at Chartis and Gregory Cropp, vice president,excess casualty with Zurich both stress the importance of insurersstaying for the long haul. “We understand this is a commitment[we're making] to the mining industry,” Rheel says.

When reviewing an account, Cropp says he is looking at pastlosses and what is being done to tackle those issues.

Rheel says he looks for insight: “If underwriters are guessing,they go to the dark side and assume the worst. We look at whatmakes you different from the average [mining company].”

Rheel adds that he looks for enterprise risk management in amining company, and whether it is part of the culture. Alsoimportant are safety and prevention measures and how the companydemonstrates that it cares for its employees—including the attitudeof human resources toward employees.

Rabl says that while he looks at a company's structure,financial program, exposures and loss experience, what is mostimportant is the company's safety culture.

Asked how risk managers can do a better job with submissions,Cox says that knowing employee concentrations is important. He alsonotes the value of getting data quickly from risk managers.

Rheel stresses the importance of getting to know the insurer'sclaims people before a loss happens.

Rheel's advice to risk managers:

• Choose a broker with expertise in the industry.

• Find out about the broker's relationship with theinsurer.

• Be “best in class,” or have a disadvantage with pricing.

• Establish global access with London and Bermudamarkets.