The European Commission’s Study on Possible Reforms to Nuclear Third-Party Liability Insurance: Recommendations Made

This blog is the final of three on the EC’s study on nuclear third party liability and insurance; previously we have written about the need for the study [1] and, once the report was published late last year, we covered the current difficulties the insurance market is having with some of the revisions to the nuclear liability Conventions [2]. In this blog we look at the recommendations the study makes to alleviate these problems.

With an understanding of the major constraints on insurance provision for the full scope of the revised nuclear liability Conventions, the EC study team identified 14 options that could increase the amount of insurance available (‘capacity’). Some of these options were immediately identified as unrealistic; for example, amending the liability Conventions is unlikely in the short term. Instead the study focused on what could be achieved within the framework of the existing/revised liability Conventions and was conceivably within the power of the EC to implement across all EU member states.

Out of the original 14 options, the 5 options that the study reviewed in detail and recommended were:

It remains to be seen whether the EC implements any of the recommendations or acts upon any of the study content [4]. Achieving a cost-effective higher amount of private financial market contribution to a future catastrophic nuclear event is within the grasp of those willing to confront the difficulties identified in the study; such an outcome could be an opportunity for the nuclear industry, the financial services sector and governments.

Prospect Law was closely involved in the preparation of this study for the EC; for those interested in understanding any aspect of the study in more detail, please get in touch.

[1] See: The European Commission and possible reforms to Nuclear Third-Party liability insurance – Prospect Law

[2] See: Third Party Nuclear Liability Insurance – Will the Insurance Market be able to cope with the proposed changes? – Prospect Law

[3] For more detail and explanation of these entities, see: PGE-Report-FINAL.pdf (city.ac.uk)

[4] The full, published EC study can be found here: Study on the insurance, private and financial markets in the field of nuclear third party liability – Publications Office of the EU (europa.eu)

About the Author

Prospect Law is a multi-disciplinary practice with specialist expertise in the energy and environmental sectors with particular experience in the low carbon energy sector. The firm is made up of lawyers, engineers, surveyors and finance experts.

This article remains the copyright property of Prospect Law Ltd and Prospect Advisory Ltd and neither the article nor any part of it may be published or copied without the prior written permission of the directors of Prospect Law and Prospect Advisory.

This article is not intended to constitute legal or other professional advice and it should not be relied on in any way.

For more information or assistance with a particular query, please in the first instance contact Adam Mikula on 020 7947 5354 or by email on adm@prospectlaw.co.uk.

Prospect is a multi-disciplinary practice with specialist expertise in the energy and environmental sectors with particular experience in the low carbon energy sector. The firm is made up of lawyers, engineers, insurance and risk management specialists, and finance experts.

This article remains the copyright property of Prospect Law Ltd and neither the article nor any part of it may be published or copied without the prior written permission of the directors of Prospect Law.

This article is not intended to constitute legal or other professional advice and it should not be relied on in any way.