Nuclear risk in insurance
A special insurance regime built on national pools and unlimited operator liability, governed by the Paris Convention and the Brussels Protocol.
Paris Convention of July 29, 1960: the operator of a nuclear installation is solely liable for third-party damage caused by an accident, whatever the cause, and without proof of fault. The maintenance contractor on site when radioactive material escapes cannot be sued by the victims, which is the channeling of liability, and the operator's nuclear liability insurance pays. The regime lives entirely outside the commercial market. The 2004 Protocol, in force since January 1, 2022, raised the operator's minimum liability to 700 million euros and widened the heads of damage. Above that, the Brussels Supplementary Convention adds tranches of public funds, first from the installation state and then from the contracting states. Private capacity is pooled, Assuratome in France, because no single insurer would carry the risk alone. Every other policy, property, liability or cyber, excludes nuclear by an express clause. A few states go further and leave operator liability unlimited.
Textbook case: a maintenance contractor is working on the site of a French nuclear plant. A radioactive incident contaminates the surrounding area. Under the channeling of liability set by the Paris Convention of July 29, 1960, only the operator is legally liable to third parties. The contractor cannot be sued directly. The operator's nuclear third-party liability insurance pays.
Follow the research
One letter a week. First, the week's underwriting note, when one is published: a dated, argued decision, signed by Paul Bernardski. Then what the observatory published on cyber risk, political risk and insurance. No account, no tracking.
No spam, one-click unsubscribe, no data ever sold.