An important step for the insurance of Polish nuclear energy. 4 companies involved

Four insurance brokers, selected in a competitive selection process: Marsh, Aon, Greco and Smartt Re , have entered into agreements with Polskie Elektrownie Jądrowe to provide comprehensive brokerage services. This concerns several hundred different risks related to the planning and construction of the first nuclear power plant in Poland .

They will insure the construction of the first nuclear power plant in Poland

– We are dealing with the first energy project of this type in Poland, not only in terms of the type of investment, but also the value and deadline. Providing insurance for such a large project is a very responsible challenge, which is why we wanted to cooperate with companies experienced in handling insurance for the largest construction risks and contracts with the highest insurance amounts – said Wojciech Rosiński, director of the financial department of PEJ.

The brokers selected by PEJ will be responsible for the company's current insurance service and for arranging insurance contracts related to the project of building a nuclear power plant at the Lubiatowo-Kopalino location. A framework agreement was concluded with each of the brokers, based on which Polskie Elektrownie Jądrowe will select a broker for individual insurances.

Special program for self-contracting and requirements for brokers

PEJ is implementing a program that involves independently concluding insurance contracts – the so-called Owner Controlled Insurance Program.

"Such action will ensure control over insurance costs and enable the use of the potential of the Polish insurance market," PEJ wrote in a press release.

It was added that during the procedure, interested companies had to demonstrate appropriate knowledge and experience in the implementation of insurance contracts, similar to the specificity and needs of the project implemented in the Choczewo commune.

An important selection criterion was the requirement to conduct uninterrupted business activity in Poland for at least 10 years and to have professional liability insurance with an appropriately high sum insured.

The Polish market does not have enough capacity. We need insurance

Insurance and reinsurance are required for technical, environmental and third-party liability issues.

- According to our estimates, the Polish insurance market currently has a capacity of around PLN 3 billion in terms of risks related to the construction of nuclear power plants. Ensuring full coverage will require broader cooperation with foreign reinsurers - assesses Tomasz Libront, CEO of Smartt Re.

Smartt Re is one of four brokers that will participate in this project. It is also involved in discussions on the creation of a national insurance pool for the nuclear sector, which will be necessary to insure power plants against risks related to ionizing radiation. No ordinary policy covers this risk.

- Equally important as securing the construction stage is the issue of civil liability of the nuclear power plant – both towards local communities and the business environment - admits Libront.

He adds that Smartt Re organises the transfer of knowledge from foreign markets, in particular from countries with developed nuclear insurance systems, and shares this knowledge with the Polish market.

The first insurance contracts for the nuclear power plant construction project in Pomerania will be arranged for the purpose of concluding an EPC contract and will cover general civil liability and professional civil liability of the designer. Subsequent contracts will be concluded as the work progresses.