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Moscow 18-19 February 2014

Third Party liability of Nuclear Operators The birth of a mutual

Worldwide capacity for Nuclear Insurance

Danny Van Welkenhuyzen Managing Director

The Mutuals

EMANI European Mutual Association for Nuclear Insurance NIRA Nuclear Industry Reinsurance Association ELINI European Liability Insurance for the Nuclear Industry BlueRe m.a. Re-insurance association for Nuclear Liability


1. Which insurance are needed to operate a nuclear site? 2. Worldwide overview of limits 3. Impact on the Nuclear Operators Liability 4. Where is the insurance capacity coming from 5. What capacity is available 6. Conclusions

1.Which insurance are needed to operate

Compulsory cover in most countries is the Nuclear Third Party liability
Liability is limited by both international conventions and by national legislation, so that beyond the limit (normally covered by insurance) the state can accept responsibility as insurer of last resort, as in all other aspects of industrial society.

Which insurance are needed to operate

Treaties such as:
The Paris Convention (1960/1968) & Brussels supplementary convention (1963) The Vienna Treaty ( 1963 /1977) Joint Protocol (1988) Convention on Supplementary Compensation for Nuclear Damage (CSC). Not yet in force. The Price Anderson Act - the world's first comprehensive nuclear liability law - 1957

Summary pre and post 2004 Paris Convention

Current Paris Convention
Basic limit of liability on operator Reduced limit of liability Max SDR 15 Mio Low-risk installation Minimum SDR 5 Mio Low-risk transport Minimum SDR 5 Mio Heads of damage 1. Property Damage 2. Personal injury/death

Revised Paris Convention

Minimum 700.000.000 Low-risk installation Minimum 70.000.000 Low-risk transport Minimum 80.000.000 1. Property Damage 2. Personal injury/death 3. Economic loss 4.Cost of measures of reinstatement of impaired environment 5. Loss of income 6. Cost of preventive measures


Current Paris Convention

Summary pre and post 2004 Paris

Prescription 10 years

Revised Paris Convention Convention 30 years for personal injury 10 years for all others

Territorial limits

Does not cover injury of damage in a country that are not a party to the convention

Installation country Other Paris signatory states Non-nuclear states Austria,Ireland and Luxembourg Vienna Convention countries who have ratified the joined Protocol Any other country with reciprocal arrangements

Material Damage & Business Interruption

Free in most of the countries except US min for decontamination costs $ Various covers bought by the operators:
Material Damage basic cover All risks with our without Machinery Breakdown All risks with our without Business Interruption


2. Worldwide overview of limits

Continent Material Damage Nuclear TPL Today Nuclear TPL Future

North America- $ to $2.750.000.000 USA Canada




C$ to C$

C$75.000.000 91.000.000 to

C$ 700.000.000 1.500.000.000

600.000.000 to

Africa Azia

U$ U$ To U$ 2 billion

U$ 450.000.000 U$900.000.000 SDR 300.000.000 ?


3.Impact on the Nuclear Operators liability Increase of the liability amount Extension of liability period to 30 years Extension of the definition of nuclear damage Inclusion of economic loss Loss of income Cost of the measures of reinstatement due to the change on the environment


Preventive measares

Overview of coverage

Amended Conventions ?

Loss of income/impairement environment

Reinstatement of impaired environment

Economic Loss

BI 30 years Current limits 91 to 418 mio Full R.P.C 700 to 1.200 mio Bodily Injury 10 years Material Damage & Bodily Injury

Insurance market versus revised conventions

Insufficient private insurance market capacity Unwillingness to cover extended periods Unwillingness to cover all the categories Nuclear Pools not able/willing to offer a full solution European Nuclear Operators opted for the mutualisation of their risks

ELINI presentation ATOMEXPO 2012



Alternative solution ?

A mutual insurance company belonging to the nuclear operators within Europe The operators want to take their responsability and provide/comply with the conventions Keep control over the funds to be sure they are available in case of need Act as an independent organisation but mutualize the risks


ELINI /BlueRe min 50% of the capacity ELINI/BlueRe = all heads of damages National Nuclear Pool r/i by BlueRe for the Difference in Conditions

Nuclear Pool





ELINI presentation ATOMEXPO 2012

4. Where is the insurance capacity coming from

Insurance & Re-Insurance market Worldwide Most of the nuclear countries have brought together local capacity on a country by country basis Creation of Nuclear Insurance pools since 1956 Alternative capacity from Mutuals formed by the industry


5. What capacity is available

Mathematical :

+1 2 Not in the insurance industry: 1,2


Nuclear Pools 1956 Material Damage Nuclear liability Country by country - reciprocity Accumulation NEIL Mutual Insurance company mainly active in the US Material Damage ONEIL out of Ireland Northcourt - 2012 Underwriting Agency Nuclear Coverage

EMANI - 1978 Material Damage Insurer 62 members- Europe-SA-Canada-US 17 different countries NIRA - 1986 Reinsurance Mutual 42 members in Europe SA Canada -US

ELINI - 2002 Nuclear Liability Insurer 36 members 14 different countries in the EU- SA - Canada

Capacity providers
Providers NEIL & ONEIL Nuclear Pools EMANI ELINI Material Damage Yes Yes Yes No NTPL Yes Yes No Yes Re-insurance Yes some Yes No






Capacity providers
Providers US$ NEIL & ONEIL Material Damage Gross 2.750.000.000 Net capacity 850.000.000 Re-insurance 1.900.000.000

Nuclear Pools
EMANI ELINI Northcourt NIRA Total

815.000.000 No 150.000.000 55.000.000

340.000.000 No 150.000.000 55.000.000 2.895.000.000

475.000.000 No None No 3.875.000.000

Capacity providers
Providers US$ NEIL & ONEIL NTPL Gross 100.000.000 Net capacity 100.000.000 Re-insurance None

Nuclear Pools
EMANI ELINI Northcourt NIRA Total

None 135.000.000 0 25.000.000 1.760.000.000

None 135.000.000 0 25.000.000 1.760.000.000

None No None No 1.500.000.000

Capacity providers
Providers US$ NEIL & ONEIL Material Damage Net 850.000.000 NTPL NET 100.000.000 Re-insurance 1.900.000.000

Nuclear Pools
EMANI ELINI Northcourt NIRA Total

340.000.000 0 150.000.000 55.000.000

0 135.000.000 0 25.000.000 860.000.000

475.000.000 No None None 2.375.000.000

6. Conclusions
Cost of a nuclear site U$ min Cost of a nuclear accident in NTPL ? Probability of an accident extreemly remote Accumulation is a problem for all insurers Transparancy would help all parties Heavy driven by Re-insurance Room for all parties Insurers Re-insurers- mutuals etc...

Final result

Win Win solution

Operator via the mutuals

Local National Pool & Commercial Market

Full cover at reasonable price


Thank you all for your attention


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