Nuclear energy gains traction with insurers on project risks

Insurers are pushing for customised products that better fit these risks. 

Nuclear energy is gaining momentum as a low-carbon power source, with insurance emerging as a key factor in supporting its development, according to Willis.

As projects scale up globally, risk management and bankability are increasingly influencing the pace and structure of nuclear expansion.

Nuclear power offers stable, carbon-free electricity and reduces reliance on imported fuels. Governments view it as a long-term solution to energy security and decarbonisation. 

Small modular reactors (SMRs) and other advanced technologies are also being developed to improve safety and operational efficiency.

However, nuclear projects face strict regulatory oversight and long development cycles.

Financing also depends heavily on public-private partnerships, tax credits, and loan guarantees.Insurance plays a central role in this environment. Whilst cost-overrun coverage is not yet widely available, insurers are working on customised products that better fit nuclear project risks. 

Construction All Risk (CAR) and Builders All Risk (BAR) policies are used to protect capital investment during the build phase, especially when paired with delay-in-start-up (DSU) extensions.

Early insurer engagement, combined with tools like predictive analytics and strong subcontractor oversight, helps align risk management with financial and safety goals, the Willis report added.