POLICY & FINANCE | INSURING SMRs Insuring SMRs
Deploying the next generation of nuclear technologies is likely to present a number of novel challenges, notably securing appropriate insurance coverage for both property and liability. Without early engagement developers could face significant obstacles to commercial roll-out.
By Ron Rispoli, Senior Vice President, Energy Group, Stephens Insurance, LLC
As small modular reactors (SMRs) move from concept to commercialisation, one of the least visible yet most critical enablers of deployment is insurance. Source: GE Vernova Hitachi
AS SMALL MODULAR REACTORS (SMRS) move from concept to commercialisation, one of the least visible yet most critical enablers of deployment is insurance. Property and liability coverage for nuclear are not only a financial safeguard, they are also a regulatory requirement. However, nuclear insurance is highly specialised, capacity constrained, and dependent on early engagement with underwriters. Insurance requirements for SMRs and microreactors
may vary based on reactor size, design, fuel forms, coolant types, and power levels. Existing regulatory frameworks establish baseline liability and financial protection requirements, but these were developed for large, traditional light water reactors. As a result, regulators and insurers may apply a more risk-informed approach when determining appropriate insurance levels for smaller or non-traditional designs.
The US liability insurance framework In the United States, nuclear liability insurance is governed by the Price-Anderson Act, a federal programme designed to ensure compensation to the public following a nuclear incident. The Act establishes
a two-tier structure. ● Primary layer: Each reactor operator must carry the maximum available private insurance, currently approximately $500m per reactor site. This coverage is provided through the American Nuclear Insurers (ANI) pool.
● Secondary layer: In the event of a major incident, all US reactor operators contribute to an industry- wide retrospective pool, with potential contributions of up to approximately $158 m per reactor. This brings total available liability protection to more than $16bn per incident.
26 | June 2026 |
www.neimagazine.com
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