NRI Annual Review 2024 - Flipbook - Page 11
New products and
technologies, notably
SMRs, lie at the heart of
the global resurgence in
nuclear power. At this
pivotal moment for the
industry, NRI is committed
to supporting new nuclear
development and helping
clients meet the challenges
and opportunities that
lie ahead.
Since 1956, NRI has provided
world-leading insurance and
specialist solutions for the global
nuclear industry. Today, as
nuclear power expands and new
product development accelerates,
NRI is enhancing its capabilities
to ensure it continues to deliver
for its clients.
A key focus area for NRI
is construction. With SMR
development underway, there
is increasing demand around
the world for new powerplants,
fuel production plants,
component manufacturing
sites and enrichment facilities.
These assets require signi昀椀cant
construction works, which often
involve unforeseen risks that
threaten to impact project rollout.
Consequently, new approaches to
insurance will be essential as newbuild construction gets underway
– particularly given the extensive
nature of the groundworks
required for nuclear sites. As
Simon Wilcock, independent
Consultant to NRI, explains:
“With most new-build projects,
teams are going to be excavating
or tunnelling deep into the
ground. Certainly for the
majority of nuclear plants major
underground works will be
required. And however effectively
you investigate a site through
geological surveys, there’s a
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strong risk of unforeseen ground
conditions and things you didn’t
expect. In previous years, the
construction insurance industry
tried to provide products to
cover these scenarios. But it very
quickly realised this couldn’t be
done in a traditional way.”
In the past, NRI has been able to
underwrite small construction
risks within its wider work on
nuclear operations, property
and liability. But to address the
challenges and opportunities
linked to new nuclear
innovations, a more dedicated
focus on construction is required.
For this reason, in 2024 NRI is
establishing a separate binding
authority for construction
capacity.
The new facility will combine
NRI’s capabilities in civil
engineering, construction
and technical analysis with
external expertise in contingent
capital and structured 昀椀nance.
Speci昀椀cally, it will create
solutions to help clients
transform uninsurable risk into
credit risk, enabling them to
conduct groundworks prior to
construction, with all investment
recovered from future revenue
streams. The facility will function
outside of the complex ‘pooling’
arrangement that exists for
nuclear operations, providing
a standalone construction
authority for the UK insurance
market. And it will leverage NRI’s
technical expertise to help clients
navigate the unforeseen and
often uninsurable risks that arise
during site construction.
Also on the construction side,
NRI is working to clarify existing
grey areas around liability and
exposure. As Simon Wilcock
comments:
“When fuel is 昀椀rst loaded into
the High Radioactivity Zone
(HRZ), coverage for the HRZ
stops under the construction
policy and transfers to the nuclear
insurance pool. For the remainder
of the nuclear reactor, certain
perils are also transferred to the
nuclear insurance pool. There is
a standard way of dealing with
this shift from construction to
operation within the language of
insurance policies. But the process
will become more complicated
with SMR technologies. We’re
using our market expertise to
help companies engaging in
smaller nuclear construction
projects, such as SMR and MMR
powerplants, or medical isotope
production plants, to understand
and address these technicalities.
It’s about using our technical
advantage and understanding
of the construction risks where
others may be nervous or
reluctant to do so.”
“However
effectively you
investigate a
site through
geological surveys,
there’s a strong
risk of unforeseen
ground conditions
and things you
didn’t expect”
Simon Wilcock
