NRI Annual Review 2023 - Flipbook - Page 11
By working closely
with NRI to make
sure any risk is priced
correctly, we are able
to support several
European pools.
in the next three or
four years once various aspects of such
an increase have been considered.
At the same time, Korea is exporting its
APR1400 technology to areas such as the
Middle East. KAEIP is keen to support the
Korea Electric Power Corporation’s work
at Barakah in the UAE and has provided a
significant share of the risk for that project.
Swiss Pool for the Insurance
of Nuclear Risks
With 18 members who are mainly Swiss
companies, the Swiss Pool for the Insurance
of Nuclear Risks (the Swiss Pool) is a large and
long-standing pool, having been established
in 1957. In a relatively unusual arrangement for
the insurance industry, the pool’s members
delegate underwriting decisions to Alain
Quéré, Pool Manager, and his team.
It is very important, therefore, that the
members have full confidence in the pool’s
management capabilities, and that the pool
has a strong system of governance in place.
The pool conducts regular underwriting and
financial audits and publishes internal reports
to increase the transparency of its operations,
and spends a lot of time explaining its actions
and decisions to its members.
“We have enough capacity at the moment,”
says Alain, “but we may need to increase that
capacity in other countries in the future, which
is why we need to continue communicating
effectively with our members and other pools
to maintain their trust”.
Along with liability limits, the length of policies
is increasing, in some cases up to 30 years,
meaning that pools will have to consolidate
their financial security and strength to cover
that increased exposure.
Another trend that Alain is eager to comment
on is the nuclear industry’s use of data to
improve the quality and efficiency of its
reinsurance transactions.
“Just as it is in other sectors, digitalisation is
transforming the nuclear insurance industry,”
he states. “We have made a lot of progress in
this area, with six pools now agreeing to use
blockchain to increase contract certainty.”
Along with managing the Swiss Pool, Alain is
responsible for chairing the General Purposes
Committee (GPC), a body comprising seven
representatives of nuclear pools worldwide.
The GPC operates under strict competition
rules and antitrust laws, and exists to facilitate
knowledge sharing and best practice. For
example, the Engineering Subcommittee
discusses survey procedures and the
standardisation of processes, while the Claims
Subcommittee focuses on improving the
efficiency of the claims handling process.
Every year, the GPC organises a Nuclear
Pools Forum for nuclear pools outside of the
committee, keeping them up-to-date with
significant developments and issues in the
nuclear insurance industry.
Like KAEIP, one of the Swiss Pool’s main
challenges, and a challenge for the pooling
system in general, is the increased liability
limits established by the revised Paris
Convention and the potential need to increase
capacity to cover those new limits.
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