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 […]
First nuclear pools were founded in mid-fifties of the 20th Century. The process was tightly connected with the beginning of nuclear industry – strictly speaking with the beginning of private nuclear industry with peaceful utilisation of nuclear energy. In insurance business the word “pool” is commonly understood as voluntary association of insurance companies providing capacity […]
Before 1997, the international liability regime was embodied primarily in two instruments: -the IAEA’s Vienna Convention on Civil Liability for Nuclear Damage of 1963 (entered into force in 1977), and -the OECD’s Paris Convention on Third Party Liability in the Field of Nuclear Energy of 1960 which entered into force in 1968 and was bolstered […]
Nuclear insurance is insurance carried by companies which work with nuclear reactors, primarily utilities which generate power with the use of a reactor, to protect them from liability claims in the event of a nuclear incident. When a company purchases nuclear insurance, it usually takes out a policy on a specific reactor. In nations with […]
The Cat pool can function on the lines of terrorism Pool operating in India whereby insurance companies cede the entire premium to the pool and the premium is distributed among the companies based on their participation in the pool. GIC can be appointed as manager to the pool who would decide on the reinsurance protection […]
Hurricanes, earthquakes, or flooding occur in almost all countries in the world. The government bears the risk in most developed countries in the world. Examples of wholly government-owned schemes are two of the oldest specific disaster insurance schemes, the Spanish comprehensive disaster insurance scheme managed by the Consorcio de Compensacion de Seguros, and the residential […]
The governments of different countries are in various stages of responding with organized “plans” that address these market issues. United States of America: In this country, state intervention has been made more urgent because, following the large losses created by hurricane Andrew in Florida in 1992 and the Northridge earthquake in California in 1994, insurance […]
If a purely private market in catastrophe insurance is to be viable, it must solve the fundamental problem of the mismatch between the size of annual premiums and the size of the expected loss. This can be done in one of two ways. The premiums can be adjusted to the losses, or the losses can […]
Catastrophes are extreme events. They are extreme in that they impose huge losses. (This is what affords them such media attention.) However, catastrophes are also extreme in that, by our fortune, they are infrequent. Elementary arithmetic shows that an insurance industry, which was able to take the long view, could spread a large infrequent risk […]