Facility to cover emerging nuclear energy risks in region
FAIR Oil & Energy Insurance Syndicate has announced that it will write nuclear energy insurance in the Middle East & north Africa (MENA) region.
The facility will cover all risks of physical loss or damage. It will also cover business interruption, including nuclear perils, radioactive contamination and machinery breakdown. However, it will not cover third party liability for nuclear plants.
At a press conference at the Multaqa conference in Qatar, FAIR managing director Nabil Hajjar said: “This line of business is new at the moment. There are many nuclear energy plants that are being built at the moment. So that’s why we thought to get into this business.”
The FAIR facility was designed with the European Mutual Association for Nuclear Insurance (EMANI) and the Nuclear Industry Reinsurance Association (NIRA) in Luxembourg.
Trust Re has managed FAIR since it was set up in October 1999.
ARIG chief executive Yassir Albaharna said: “It gives us great pleasure, along with FAIR, to launch this new line of business.
“We see great opportunity for this class of business in the region.”
Trust Re chief operating officer Kamal Tabaja said: “I think the region will follow what other regions are doing in terms of diverting from oil and gas energy into renewable energy. As managers of FAIR we realise that ther is a need for capacity going forwards.”
Tabaja added that the MENA countries most active in planning nuclear energy plants are the United Arab Emirates, Egypt, Saudi Arabia and Morocco.