Part 2 of 2 Parts (Please read Part 1 first)
Libront added, “Obviously, we are aware of the importance of ESG policies in our lives, the need to gradually move away from fossil fuels, the need to diversify energy sources and to take advantage of the opportunity of nuclear power.
Libront explained that “Building an insurance strategy is important so that the Polish market becomes a strong partner for foreign insurers and reinsurers whose insurance capacity it will use. For our partners, the strategy means a good understanding of Poland’s energy transition path and the development of Poland’s nuclear power industry, the conditions, risks, and opportunities. Finally, the insurance strategy guarantees the nuclear industry optimal protection and good conditions for cooperation with the insurance market.”
He said that having the right strategy in place is also about beginning work on the shape and organization of a national nuclear pool or other national association of insurers. This pool will take over the management of insurance risks once the plants are up and running and nuclear fuel is in the reactors. Smartt Re has thrown its support of the development of just such a national nuclear pool.
Exploring what shape such an organization might take, Libront revealed that this depends on the decisions of the insurance market itself and that various solutions are already in place around the globe. Smartt Re is supporting a scenario where there is one nuclear pool operating in Poland. Discussions on this have already begun.
Libront highlighted that Towarzystwo Ubezpieczeń Wzajemnych Polski Zakład Ubezpiecze Wzajemnych
(TUW PZUW) , the mutual arm of Polski Zakład Ubezpiecze (PZU) the biggest insurer in Poland, has signed an agreement of cooperation with the British Nuclear Risk Insurers. Around the world, such associations of insurers and reinsurers work together to be responsible for insured risks. Smartt Re’s role as a specialized reinsurance broker is to leverage its international reach and relationships to facilitate networking, know-how adoption and knowledge exchange.
This is especially important given that other nuclear pools want to also be involved at the planning stage of the construction of a nuclear power plant in Poland, with a so-called "watching line". Libront explained that this is a small share that allows them to observe from the front row the progress of the construction of the nuclear power plant, in the insurance of which they will have a decisive share once it is operational.
On the power of international collaboration in supporting the future of nuclear energy, Libront noted that, as the industry evolves, not only are the biggest government investments to be insured, but also those supported by the private sector, micro-reactors, all companies, subcontractors, services and infrastructure.
He went on to say that “That’s not only construction and erection, but also third-party liability. All these entities will have to deal with the issue of adequate insurance coverage. Intra- and inter-sectoral collaboration, both domestically and in the European arena, is necessary for the financial security of these strategic investments for Poland.”
He finished by saying that “We can draw on various international experiences and it is good to see that various parties, including the nuclear power industry and the public administration, are already involved in discussions about potential solutions initiated by the insurance industry.”