FAIR Oil & Energy Insurance Syndicate (FOEIS) is expanding its reinsurance acceptance scope to include nuclear energy risks. The facility will cover all risks of physical loss or damage and business interruption, including nuclear perils, radioactive contamination and machinery breakdown, but excluding third-party liability for nuclear plants.
Headquartered in Bahrain and managed by Trust Re, FOEIS said that the move is part of its efforts to provide FAIR members and clients with a wider range of services, especially as many countries in the MENA region and other areas including Asia and Africa are increasingly considering developing nuclear programmes.
FOEIS added that the nuclear energy reinsurance facility is designed to cater for the region’s potential projects with the technical cooperation of the European Mutual Association for Nuclear Insurance (EMANI) in Belgium and the support of the Nuclear Industry Reinsurance Association (NIRA) in Luxembourg.
Chairman of the Syndicate, Mr Yassir Albaharna, said: “With this move, the Syndicate is taking an early step in positioning itself as a reliable regional capacity for the anticipated upcoming nuclear energy production developments in the region and in particular in the Afro-Asian markets.”
Mr Nabil Hajjar, Managing Director of the Syndicate, said: “We are sure that members, producers and insurance companies will utilise the Syndicate’s capacity and will find our technical support useful and beneficial to them which will enhance the position of the Syndicate as a reliable regional reinsurer.”
Mr Kamal Tabaja, Chief Operating Officer of Trust Re, said: “The addition of nuclear energy reinsurance to the Syndicate’s scope of risk acceptance, which was preceded by the addition of renewable energy and power plant reinsurance back in 2011, is vital to the increasing need of environment-friendly power generation in the Syndicate’s area of operation.”
FOEIS, which started operations in 1999, currently has 32 members from among insurance and reinsurance companies in 21 Afro-Asian countries. It writes oil and energy business from members, non-members and brokers on a facultative basis. Trust Re has been managing the Syndicate since its inception.