NRI Annual Review 2023 - Flipbook - Page 10
NUCLEAR INSURANCE POOLS
Interview with Henry Hwang from the Korean Pool
and Alain Quéré from the Swiss Pool
NRI works with a number of
Korea Atomic Energy
nuclear insurance pools around
Insurance Pool
the world to jointly underwrite
The Korea Atomic Energy Insurance Pool
technically challenging types of
(KAEIP) is a relatively large pool, with 12
members, and features 10 of the 11 Korean
risk and support the industry’s
social licence to operate. This article general insurance companies.
“KAEIP is a kind of ceding pool,” explains
considers two of those pools, the
Henry Hwang, KAEIP’s Manager, “which
Korea Atomic Energy Insurance
means that we transfer most of its business in
Pool and the Swiss Pool for the
Korea to other pools, such as NRI (the British
Nuclear Insurance Pool) or the Japan Atomic
Insurance of Nuclear Risks.
Energy Insurance Pool, rather than playing a
leading role ourselves.”
As part of his role, Henry checks that risks
arranged with European pools to cover new
heads of damage relating to the revised
Paris Convention, which was ratified on
17 December 2021, are covered by KAEIP’s
capacity and risk appetite. KAEIP also needs
support from and to reinsure with other pools,
including the China Nuclear Insurance Pool or
the Japan Atomic Energy Insurance Pool, as
well as NRI.
“We welcome NRI’s involvement,” he says. “By
working closely with NRI to make sure any
risk is priced correctly, we are able to support
several European pools.”
Construction projects are moving at pace in
Korea, with two new nuclear power plants
having recently gone into operation and three
more currently under construction. By 2025,
a total of 30 units will have been insured,
leading to an increase in domestic liability.
The Nuclear Liability Act in Korea extended its
financial security limit to 300M SDR in 2015
to match the operator’s liability. Last year, the
act was amended to increase the operator’s
liability to 900M SDR and the financial security
limit is now expected to be further extended
10
