Korean Re manages the Korea Atomic Energy Insurance Pool (KAEIP), which is a voluntary, unincorporated association of non-life insurance and reinsurance companies. On behalf of its members, we support the operation of KAEIP based on our expertise in risk management and underwriting so that the pool can provide risk transfer solutions to the nuclear industry that would otherwise be unable to obtain insurance coverage.
There are 26 nuclear power plants (NPPs) in Korea, with 24 NPPs in operation and two NPPs permanently shut down (Kori Unit 1 in June 2017 and Wolsong Unit 1 in December 2019). Currently, one unit is under review for commercial operation, and three additional units are under construction. Globally, a total of 444 reactors are commercially operational, and 53 reactors are currently being built. Major countries with nuclear reactors in construction are China (15 units), India (6 units), the UAE and Russia (3 units each).
In 2020, KAEIP wrote premiums of KRW 34.4 billion from the domestic direct business and KRW 16.6 billion from the overseas inward reinsurance business. The domestic primary business is expected to grow in line with the continued construction of nuclear reactors.
Meanwhile, the significant market hardening trend in the global insurance industry has had some impact even on the nuclear insurance market, resulting in a slight increase in premium rates in several countries. These modest rate increases are expected to be sustained, considering market conditions are set to remain firm in the years to come.
As a provider of specialist insurance coverage for the nuclear industry, KAEIP will continue to support nuclear power plants in terms of insurance capacity and risk management services. In addition to ensuring that stable insurance capacity is provided domestically, it will also keep exploring new growth opportunities across the globe by focusing on areas where new reactors are being built or local regulations governing civil liability for nuclear damage and compensation have been or will be reinforced.
Gross Written Premiums: Korea Atomic Energy Insurance Pool (KAEIP)
(Units: KRW billion, USD million)
|FY 2020 (KRW)||FY 2020 (USD)||FY 2019 (KRW)||FY 2019 (USD)|
|Overseas Reinsurance Inward||16.6||13.9||16.7||14.2|
✽ Individual figures may not add up to the final shown due to rounding.