POLICY & FINANCE | INSURING SMRs
Existing insurance frameworks were developed for large, traditional reactors, creating added complexity for SMR deployment. Source: ANS
these frameworks share core principles: liability is channelled exclusively to the operator, with liability caps supplemented by public funds. For SMR developers pursuing international
deployment, this creates a jurisdiction-by-jurisdiction insurance strategy that often requires coordination across multiple national insurance regimes. Most countries maintain domestic nuclear insurance pools that provide or coordinate coverage within their jurisdictions. Examples include Nuclear Risk Insurers (UK), Assuratome (France), Deutsche Kernreaktor- Versicherungsgemeinschaft (Germany), and the Japan Atomic Energy Insurance Pool. Because no single national pool can absorb the full risk of a nuclear accident, these entities participate in international reinsurance arrangements and reciprocal risk-sharing agreements with other pools and a limited number of specialist reinsurers. Coverage typically includes physical damage, as well as decontamination and stabilisation costs.
A constrained market and specialised brokerage Existing insurance frameworks were developed for large, traditional reactors, creating added complexity for SMR deployment. Unlike conventional insurance markets, nuclear insurance is provided by a small number of highly specialised pools and mutual insurers. Global underwriting capacity is limited, and participation is tightly controlled. This dynamic is particularly relevant for SMRs, as developers may pursue multi-unit deployments, novel reactor designs, or non-traditional ownership structures – all of which introduce new risks from an underwriting perspective. In practice, access to insurance capacity – not reactor design – may become a gating factor for deployment. Given the complexity of the nuclear insurance market, engaging a broker with demonstrated experience in nuclear insurance is essential. Nuclear insurance is not transacted in a broad, competitive marketplace; rather, it is concentrated among a small number of insurers each with distinct underwriting requirements and processes.
28 | June 2026 |
www.neimagazine.com
An experienced broker can facilitate early engagement with these markets, advise on appropriate coverage structures, and help align project risk profiles with underwriting expectations. They are also better positioned to anticipate capacity constraints, identify potential coverage gaps, and structure placements that satisfy both regulatory requirements and lender expectations. For SMR and microreactor developers, these capabilities are particularly important. Emerging technologies, multi- unit deployment strategies, and evolving regulatory frameworks introduce uncertainties that must be translated into insurable risk. Without specialised expertise, projects may face delays, higher costs, or challenges in securing adequate coverage.
The critical role of early engagement Insurance cannot be treated as an afterthought. Developers who engage with brokers and underwriters early in the project lifecycle are better positioned to validate the insurability of their designs and align engineering, safety, and risk management decisions with market expectations. This approach helps avoid late-stage surprises that could delay licensing or financing. Delayed engagement with insurance markets can
expose developers to significant risks, including coverage exclusions, insufficient limits, or, in extreme cases, an inability to secure required insurance. Coverage is not guaranteed to be available in the necessary amount, form, or timeframe. As the SMR market grows, competition for limited insurance capacity is likely to intensify. Insurance has historically been a key enabler of
nuclear energy, providing financial assurance necessary for public acceptance and private investment. For SMRs, it will play an equally pivotal role. For developers, early engagement with nuclear
insurance brokers, designing for insurability, and planning for constrained capacity will be critical. In the race to deploy the next generation of nuclear technology, those who treat insurance as a strategic priority rather than a compliance exercise will have a decisive advantage. ■
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