Lloyd's leads innovative global nuclear programme

Northcourt's innovative nuclear programme was developed with the idea that there has been a shortage of capacity in the nuclear market, and that the territory-based structure of existing programmes has made it difficult to meet the demands of the modern global industry. 

The coverholder’s fresh approach to coverage means it will be able to place nuclear insurance programmes globally using a panel of top Lloyd's insurers, all of which benefit from Lloyd’s A+ rating (Standard & Poor’s).

"Timely response"

“Northcourt is a timely response to the shortage of capacity in the traditional global nuclear insurance market, for too long dominated by nuclear pools and mutuals,” says Chief Executive Officer of Northcourt, Alan Rickett. “Amid burgeoning investment in nuclear energy worldwide there is a growing demand for a new approach to insurance which is aligned with the global nature of the industry today."

Northcourt will initially offer property damage and business interruption insurance of up to $200 million and anticipates expanding into nuclear liability and construction during 2012.

"There is limited insurer choice for nuclear companies and many have expressed growing concern over the existing market’s ability to cope with an increased demand for limits and scope of cover,” adds Rickett.

Amlin takes the lead

Amlin will be the lead insurer for Northcourt at Lloyd's. “As nuclear technologies develop and new markets open across the world, so do the contingent risks of this industry," says Duncan Dale, Head of Property & Casualty for Amlin London. "Amlin and the insurer panel seek to enable this development through flexible risk coverage and are pleased to have supported Northcourt in bringing a long-overdue new approach to the market.”

Marsh and Guy Carpenter have been involved in advising on the development of the programme and provided expertise on the existing nuclear insurance market. “The growth of nuclear energy cannot be underestimated,” says Mark Popplewell, International Nuclear Practice Leader from Marsh. “Over 60 new nuclear reactors are currently being built across the globe, with more than 400 in the pipeline. Nuclear power is regarded by many as the solution to the world’s energy problems,"
 
“Due to the limitations of the existing nuclear insurance arrangements, clients have often in the past struggled to get competitive insurance protection,” continues Popplewell. “As the nuclear sector matures and the nuclear renaissance continues to gather momentum, Northcourt offers an exciting source of alternative cover.”

Marsh will provide accounting and administrative services to the company, and Guy Carpenter will manage Northcourt’s insurance market placements.

Northcourt is based in Malta and licensed to underwrite nuclear business on a global basis. It will be regulated by the Malta Financial Services Authority.