Nuclear Insurance Association of Canada announces global access to domestic Canadian insurance pool

Colleen DeMerchant, general manager of the Nuclear Insurance Association of Canada (NIAC), announced on Wednesday global access to the domestic Canadian insurance pool by other international nuclear pools.

Under a new co-operative agreement with Nuclear Risk Insurers (NRI), NIAC is able to “leverage their ‘Made in Canada’ expertise while providing access to other international nuclear insurance pools to increase capacity in order to meet Bill C-22’s $650 million and rising liability limit for nuclear operators,” NIAC said in a press release.

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Under Bill C-22, the Energy Safety and Security Act, absolute liability for nuclear operators – including nuclear power plants – increased from $75 million to $650 million. It will be increased in phases, so that three years after royal assent, which occurred in February, the absolute liability will be $1 billion.

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Canada’s nuclear insurance pool allows Canadian insurers to share the risks of insuring nuclear operators in Canada so that no single insurer is unable to settle claims or is “financially ruined” by them, the NIAC said in the release. “From the outset, the peril associated with nuclear reactor incidents has been recognized as significant and unpredictable,” the release said. “The damages caused by a major event may be immense, as was the case at the Fukushima Daiichi Nuclear Power Plant after the 2011 Thoku earthquake and tsunami. For these reasons, high quality insurance with very large settlement capabilities is required by Canadian and international regulators.”

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The NIAC added that a well-administered pool permits timely and fair claims settlement for all affected parties, in the unlikely event of a catastrophic loss.

Established in 1958, NIAC is a voluntary, non-profit, unincorporated association of insurers providing property and liability insurance to nuclear installations operating in Canada. With members – who include insurers, reinsurers and Lloyd’s underwriters licensed in Canada – the association specializes in insurance, risk management, underwriting and inspections for Canadian nuclear exposures.