A new player in the nuclear insurance industry was unveiled today, with the launch of Malta based, Northcourt. The facility is said to be the first addition to the market in 30 years. It will be primarily underwritten by Lloyd’s syndicate Amlin, a company with previous experience working with nuclear risk.
Northcourt is registered in Malta, licensed to underwrite nuclear business on a global scale, and regulated by the Malta Financial Services Authority. It is led by CEO Alan Rickett, who was previously senior vice president at Marsh.
Marsh and its sister company, Guy Carpenter, were involved in the creation of Northcourt and will support Amlin with their underwriting duties.
Northcourt will initially offer property damage and business interruption insurance of up to $200mn but expects to expand into nuclear liability and construction cover over the course of the year.
Because of its connections with the Lloyd’s market, Northcourt may have an advantage over its traditional territory-based competitors.
CEO of the new company, Alan Rickett, said, “There is limited insurer choice for nuclear companies and many have expressed growing concern over the existing market’s ability to cope with an increase demand for limits and scope of cover. There is demand for a new approach to insurance which is aligned with the global nature of the industry today.”
Despite the reaction to the disaster at Japan’s Fukushima Daiichi nuclear power station following the March 2011 earthquake and tsunami, the insurance industry expects strongly growing demand for cover with over 60 new reactors under construction and 400 more in the pipeline.
