Lloyd's managing general agent (MGA) Northcourt has launched a nuclear liability insurance facility that initially will offer capacity up to $100m. Northcourt anticipates that the size will increase before the end of the year.
The MGA noted that there were currently "a limited number of insurers operating in the nuclear insurance sector" and said that many nuclear companies had "expressed growing concern over the existing market's ability to cope with increased demand for limits and scope of cover".
Northcourt said that its facility would be able to place nuclear programmes globally "through a panel of leading Lloyd's syndicates and company markets". The panel is led by Tokio Marine Kiln, "which has a proven track record of underwriting nuclear risks on the property side".
Northcourt chief executive Alan Rickett said that the MGA's binder was "a timely response to growing demand for higher nuclear liability limits". He noted that amendments to international nuclear conventions would mean that nuclear liability limits would increase "substantially" for most nuclear sites in Europe and around the world.
Matt Lightowler, vice-president of GC Fac at reinsurance broker Guy Carpenter, will manage Northcourt's market placements. He said that "the growth of nuclear energy cannot be underestimated. Over 60 new nuclear reactors are currently being built globally, with over 180 in the pipeline".