ONLINE BROCHURE
STRUCTURE AND ROLE OF NUCLEAR RISK INSURERS LTD
Nuclear Risk Insurers Limited (NRI) - (originally the British Insurance (Atomic Energy) Committee - and British Nuclear Insurers) was established in 1956 by Insurance Companies and Lloyd's Underwriters to manage the Pools formed for the insurance of public liability, material damage and business interruption risks of nuclear installations. The change of structure and title to "Nuclear Risk Insurers" (NRI) took place with effect from 1st October 2003.
The Insurance Companies and Lloyd's Underwriters who support NRI have all signed a Pool Members' Agreement (PMA) and have thus delegated their authority to the NRI Board of Directors. In turn the Board delegates much of its authority to the permanent staff of NRI.
NRI is a company limited by guarantee, a business structure suited to non-profit organisations. The member companies' liability is limited to a prescribed amount and all premiums received are remitted to the member companies. NRI therefore only has to account for its running costs.
The categories of nuclear installation and risks insured by NRI are as follows:-
NRI (often referred to as "the British Nuclear Pool" in the same way as its predecessor) provides cover for the aforementioned installations and risks in respect of public liability (which may include liability for products, professional indemnity and certain other contingent liability insurances) and material damage (which may include consequential loss and, in certain circumstances, mechanical and electrical breakdown of nuclear plant) and liability insurance in respect of transports of nuclear matter. New nuclear plant under construction is not covered by the British Nuclear Pool until it becomes 'nuclear', upon the delivery of nuclear fuel to the site or loading of fuel into a reactor, but insurance cover is available for construction risks on operational nuclear sites.
Furthermore, NRI can provide products liability cover in respect of independent contractors engaged in the supply of goods or services to nuclear installations.
NRI today represents the largest single block of risk transfer insurance capacity in the world, at around £400m ($700m) and is also one of the oldest nuclear insurance entities in the world (founded in 1956).
METHOD OF OPERATION
Member insurers can opt to provide insurance capacity to one or more of the following broad classes of business, which are underwritten by NRI:-
Home risks (i.e. U.K.) Material Damage
Liability (including nuclear transport)
Foreign risks Material Damage Liability (including nuclear transport)
Canadian risks Material Damage Liability (including nuclear transport)
Capacity is subscribed from 1st January each year and can be withdrawn or renewed each year in accordance with variation procedures laid out in the PMA. NRI is only able to accept insurances or reinsurances for a period not exceeding 12 months (plus odd time), but any risks accepted during the course of a year will be carried through to their expiry date. Subscriptions to the business in respect of Canada are provided in Canadian Dollars, but for all other business they are in Pounds Sterling. For reinsurance acceptances from other nuclear insurance pools overseas, the Sterling capacity is converted into other currencies at the date of acceptance or at the date of inception of the risk, if later. In such cases a small margin is sometimes retained to cope with minor fluctuations in foreign currencies or small increases in limits, but once the acceptance is made NRI members are bound for the currency amount accepted until expiry date.
NRI operates on an underwriting year of account basis with each account remaining open for three years, so as to ensure realistic assessment of any claims or notifications of incidents. At the close of an underwriting year transfers are made to the next year's account in respect of outstanding claims and claims incurred but not reported. NRI does not retain unearned premium reserves and distributions of surpluses are made to members at quarterly intervals.
Under the 3 year accounting system mentioned above, withdrawing Members' liabilities under the British Nuclear Pool will cease as from closure of the last Underwriting Year in which they participated.
ACTIVITIES OF NRI LTD
The activities of NRI can be broadly divided into the managing of its insurance and reinsurance activities and its wider representational roles:
Insurance Operations
NRI directly services the needs of UK and some other nuclear industry clients and their Brokers, arranging suitable insurance covers whilst it also provides reinsurance for other nuclear pools overseas as required. The major part of the British Nuclear Pool's income currently comes from the facultative reinsurance accepted from other nuclear pools where NRI's capacity often permits it to play an important part. All reinsurance offers submitted are carefully underwritten to ensure that terms and conditions match the UK market's technical requirements - if this is not the case such business is declined. NRI is able to call upon the expertise of members as required for advice on any case not within the technical operating parameters and where specific insurance knowledge may be required; for example in the rating of machinery breakdown covers, engineering specialists amongst the membership can be called upon to provide specific assistance.
International Co-operation
As one of the first nuclear insurance pools to be formed, NRI has always played a leading role in encouraging the growth of nuclear insurance capacity internationally. This has led to the development of good reinsurance relationships with some other international nuclear pools and has facilitated the rapid provision of extremely well rated insurance security for nuclear clients all over the world.
In the very early days of its existence, the original British Insurance (Atomic Energy) Committee invited a number of reinsurers and others who were contemplating the formation of a nuclear pool to London to discuss matters of common interest and concern. These meetings were the forerunners to the international Nuclear Pool Chairmen's Conferences which are now held every three years in London.
Over the years NRI and its predecessors have assisted the insurance markets in a number of overseas countries with the formation and operation of their own net-line Pools, thus increasing the availability of secure capacity.
Technical Advice
NRI employs a full time nuclear technical expert and has access to much nuclear expertise through a large network of industry experts, other pool technicians and consultants; contact is also maintained with the Nuclear Installations Inspectorate (the UK nuclear industry regulator).
Market Representation
NRI represents the UK insurance market's interests at meetings of the British Insurers' European Committee (BIEC) and attends meetings of the Comité European des Assurances (CEA) General Committee for Atomic Risks. NRI also acts as observer for the CEA at the annual meetings of the Organisation for Economic Co-operation and Development's (OECD) Nuclear Energy Agency group of Governmental experts on third party liability in the field of nuclear energy and it provides a lecturer to the OECD's International School of Nuclear Law.
As the representative of the London insurance market on nuclear insurance matters, NRI maintain contact with the UK Government's Department of Trade and Industry and frequently contributes to discussions on a wide variety of nuclear matters including current or proposed legislation in the nuclear energy field.
Representatives of NRI are also active members of the UK Nuclear Industry Association, the International Nuclear Law Association and the World Nuclear Transport Institute (WNTI).
NRI seeks to support the UK and global nuclear industry where possible and is currently a contributor to the Westminster Energy Forum.
STRUCTURE AND ROLE OF NUCLEAR RISK INSURERS LTD
Nuclear Risk Insurers Limited (NRI) - (originally the British Insurance (Atomic Energy) Committee - and British Nuclear Insurers) was established in 1956 by Insurance Companies and Lloyd's Underwriters to manage the Pools formed for the insurance of public liability, material damage and business interruption risks of nuclear installations. The change of structure and title to "Nuclear Risk Insurers" (NRI) took place with effect from 1st October 2003.
The Insurance Companies and Lloyd's Underwriters who support NRI have all signed a Pool Members' Agreement (PMA) and have thus delegated their authority to the NRI Board of Directors. In turn the Board delegates much of its authority to the permanent staff of NRI.
NRI is a company limited by guarantee, a business structure suited to non-profit organisations. The member companies' liability is limited to a prescribed amount and all premiums received are remitted to the member companies. NRI therefore only has to account for its running costs.
The categories of nuclear installation and risks insured by NRI are as follows:-
- Land based reactors, ancillary buildings, nuclear fuel and generally all other property on the designated site.
- Plants for any manufacture, fabrication or processing of nuclear fuel, other than natural uranium, including the reprocessing of irradiated nuclear fuel.
- Plants for processing or disposal of nuclear waste arising from the nuclear fuel cycle.
- Factories for the separation of isotopes of nuclear fuel.
- Buildings concerned with the storage of enriched or irradiated fuel used or to be used in any reactor, or nuclear waste arising from nuclear fuel (not being incidental to or temporarily used in connection with transport of such nuclear fuel or waste).
- Research establishments using nuclear substances.
- Construction work taking place on a designated nuclear site.
- Any other installation considered by National Law to be a nuclear installation and for which the operator is obliged to insure for third party risks up to the minimum sums set out in the Paris or Vienna Nuclear Liability Conventions.
- Nuclear liability insurance for the international or national transportation of nuclear materials.
NRI (often referred to as "the British Nuclear Pool" in the same way as its predecessor) provides cover for the aforementioned installations and risks in respect of public liability (which may include liability for products, professional indemnity and certain other contingent liability insurances) and material damage (which may include consequential loss and, in certain circumstances, mechanical and electrical breakdown of nuclear plant) and liability insurance in respect of transports of nuclear matter. New nuclear plant under construction is not covered by the British Nuclear Pool until it becomes 'nuclear', upon the delivery of nuclear fuel to the site or loading of fuel into a reactor, but insurance cover is available for construction risks on operational nuclear sites.
Furthermore, NRI can provide products liability cover in respect of independent contractors engaged in the supply of goods or services to nuclear installations.
NRI today represents the largest single block of risk transfer insurance capacity in the world, at around £400m ($700m) and is also one of the oldest nuclear insurance entities in the world (founded in 1956).
METHOD OF OPERATION
Member insurers can opt to provide insurance capacity to one or more of the following broad classes of business, which are underwritten by NRI:-
Home risks (i.e. U.K.) Material Damage
Liability (including nuclear transport)
Foreign risks Material Damage Liability (including nuclear transport)
Canadian risks Material Damage Liability (including nuclear transport)
Capacity is subscribed from 1st January each year and can be withdrawn or renewed each year in accordance with variation procedures laid out in the PMA. NRI is only able to accept insurances or reinsurances for a period not exceeding 12 months (plus odd time), but any risks accepted during the course of a year will be carried through to their expiry date. Subscriptions to the business in respect of Canada are provided in Canadian Dollars, but for all other business they are in Pounds Sterling. For reinsurance acceptances from other nuclear insurance pools overseas, the Sterling capacity is converted into other currencies at the date of acceptance or at the date of inception of the risk, if later. In such cases a small margin is sometimes retained to cope with minor fluctuations in foreign currencies or small increases in limits, but once the acceptance is made NRI members are bound for the currency amount accepted until expiry date.
NRI operates on an underwriting year of account basis with each account remaining open for three years, so as to ensure realistic assessment of any claims or notifications of incidents. At the close of an underwriting year transfers are made to the next year's account in respect of outstanding claims and claims incurred but not reported. NRI does not retain unearned premium reserves and distributions of surpluses are made to members at quarterly intervals.
Under the 3 year accounting system mentioned above, withdrawing Members' liabilities under the British Nuclear Pool will cease as from closure of the last Underwriting Year in which they participated.
ACTIVITIES OF NRI LTD
The activities of NRI can be broadly divided into the managing of its insurance and reinsurance activities and its wider representational roles:
Insurance Operations
NRI directly services the needs of UK and some other nuclear industry clients and their Brokers, arranging suitable insurance covers whilst it also provides reinsurance for other nuclear pools overseas as required. The major part of the British Nuclear Pool's income currently comes from the facultative reinsurance accepted from other nuclear pools where NRI's capacity often permits it to play an important part. All reinsurance offers submitted are carefully underwritten to ensure that terms and conditions match the UK market's technical requirements - if this is not the case such business is declined. NRI is able to call upon the expertise of members as required for advice on any case not within the technical operating parameters and where specific insurance knowledge may be required; for example in the rating of machinery breakdown covers, engineering specialists amongst the membership can be called upon to provide specific assistance.
International Co-operation
As one of the first nuclear insurance pools to be formed, NRI has always played a leading role in encouraging the growth of nuclear insurance capacity internationally. This has led to the development of good reinsurance relationships with some other international nuclear pools and has facilitated the rapid provision of extremely well rated insurance security for nuclear clients all over the world.
In the very early days of its existence, the original British Insurance (Atomic Energy) Committee invited a number of reinsurers and others who were contemplating the formation of a nuclear pool to London to discuss matters of common interest and concern. These meetings were the forerunners to the international Nuclear Pool Chairmen's Conferences which are now held every three years in London.
Over the years NRI and its predecessors have assisted the insurance markets in a number of overseas countries with the formation and operation of their own net-line Pools, thus increasing the availability of secure capacity.
Technical Advice
NRI employs a full time nuclear technical expert and has access to much nuclear expertise through a large network of industry experts, other pool technicians and consultants; contact is also maintained with the Nuclear Installations Inspectorate (the UK nuclear industry regulator).
Market Representation
NRI represents the UK insurance market's interests at meetings of the British Insurers' European Committee (BIEC) and attends meetings of the Comité European des Assurances (CEA) General Committee for Atomic Risks. NRI also acts as observer for the CEA at the annual meetings of the Organisation for Economic Co-operation and Development's (OECD) Nuclear Energy Agency group of Governmental experts on third party liability in the field of nuclear energy and it provides a lecturer to the OECD's International School of Nuclear Law.
As the representative of the London insurance market on nuclear insurance matters, NRI maintain contact with the UK Government's Department of Trade and Industry and frequently contributes to discussions on a wide variety of nuclear matters including current or proposed legislation in the nuclear energy field.
Representatives of NRI are also active members of the UK Nuclear Industry Association, the International Nuclear Law Association and the World Nuclear Transport Institute (WNTI).
NRI seeks to support the UK and global nuclear industry where possible and is currently a contributor to the Westminster Energy Forum.
