Kathmandu. Nuclear energy is growing rapidly as a source of low carbon energy in the world. Insurance is emerging as a major factor in the growth of nuclear energy.
According to Willis, as projects grow globally, risk management and banking capabilities are increasingly impacting the pace and structure of nuclear expansion. Nuclear power provides stable, carbon-free electricity and reduces dependence on imported fuels. Governments see this 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 operating efficiency. However, nuclear projects face strict regulatory oversight and long growth cycles.
Financing also relies heavily on public-private partnerships, tax credits and credit guarantees. Insurance plays a central role in this environment. However, cost-added coverage is still not widely available. Insurance companies are working on customized products that better match nuclear project risks.
Construction All Risk (CAR) and Builder All Risk (BAR) policies are used to secure capital investment, especially during the joint construction phase.
The Willis report states that initially, combined with tools such as insurance company engagement, predictive analysis and strong subcontractor inspection, will help align risk management with financial and security goals.
