Whilst Fukushima Daiichi should not create a reduction in insurance capacity, it will be the political effects that will slow the nuclear renaissance. This is the view of rhe JLT Global Nuclear Practice Group (GNPG), which is concerned about the perception of nuclear as a result of events.
“Whilst potentially this situation may result in increased pricing for nuclear insurance, in reality the nature of the Japanese nuclear insurance pool means that none of the international insurance or reinsurance players should be impacted,” said Bernadette Hackett, partner, JLT GNPG. ”However, it is unfortunate that the situation will impact on people’s perceptions and could therefore have a political impact on the nuclear renaissance that JLT predicted last year.”
The situation in Japan with Fukushima Daiichi is incredibly unusual, an earthquake followed by a tsunami wave. Whilst insurers will now probably look more carefully at nuclear facilities in quake zones, overall JLT GNPG do not expect the available Global Nuclear Capacity of e2-3 billion to be significantly impacted by this event.
“Clearly risk factors have been highlighted by recent events and we would expect this to result in a slower nuclear renaissance across the globe. Nuclear operations present a complex multi-dimensional risk environment and have to be considered very carefully. The specialised nuclear insurance market operates through a country pool structure which is subject to a number of international conventions,” Hackett added.
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