Luxembourg-based mutual Nuclear Industry Reinsurance Association (NIRA) is looking to write more business in the Middle East, with the region looking to build more nuclear facilities, said Managing Director Danny Van Welkenhuyzen.
“Reinsurers in the region have either limited or no involvement in nuclear,” he said in an interview on the sidelines of Multaqa Qatar in March this year. “Because this is such a restricted market, nuclear insurers are looking for net line reinsurance capacity. NIRA has been doing business with local insurers and we are happy with the outcome so far.”
According to the World Nuclear Association, the UAE is one of the front runners among countries actively considering embarking on atomic power programmes, and has four commercial nuclear power reactors under construction. Reactors are also being planned or under construction in Egypt and Jordan.
NIRA reinsures nuclear risks on a worldwide basis, covering installations in Europe, US, Canada, South Africa, the Middle East and China. It offers up to US$80 million in capacity but Mr Van Welkenhuyzen is positive that this will grow to around $100-$150 million over the next five years. NIRA offers only net capacity, and writes business mostly direct with primary insurers, although some business is also arranged via brokers.
Reinsurers it works with in the Middle East include Abu Dhabi National Insurance Co (ADNIC), Qatar Re, Arig, Trust Re and the FAIR Oil & Energy Syndicate, managed by Trust Re. Besides pure capacity, NIRA transfers technical know-how to clients through its “reinsurance days”, which include working sessions whereby NIRA’s engineers and underwriters provide expertise to cedants and re-insurers. It held one such session last year in Bahrain for Arig and Trust Re.
Apart from developing business opportunities, NIRA is looking to expand its membership, currently standing at 43, mostly from Europe and North America. Last September, it opened the door for nuclear operators in other parts of the world to join the mutual as members by changing its by-laws. Some companies have expressed interest in joining although they have not made firm plans to do so yet, he said.
Looking ahead, NIRA will continue to focus its efforts on developing countries exploring nuclear energy. “Construction of nuclear facilities is going on in the Middle East and Far East, and the likelihood of further development is imminent,” noted Mr Van Welkenhuyzen.
The anti-nuclear movement, he said, “is more of a political concern in some countries compared to others. Everyone needs energy, and the right mix includes nuclear. Solar, wind, renewables and other sources will not completely replace atomic or conventional sources”.
In 2015, NIRA recorded net premiums earned of EUR6.5 million (US$7.4 million), an 18% increase y-o-y, and earnings of EUR4.3 million, a fall of 34% y-o-y.