NIAC Nuclear Insurance Expert Colleen DeMerchant Says Increase in Liability Coverage and Nuclear Exclusion in Property and Casualty Creates Big New Opportunity for Canadian Underwriters

Toronto, Ontario: At the 2014 National Insurance Conference of Canada – the country’s largest annual property and casualty insurance convention – Nuclear Insurance Association of Canada General Manager Colleen DeMerchant moderated an expert panel discussion titled “Lessons Learned From Fukushima.”

“A key business lesson here is that there is a major business opportunity now on the horizon for Canadian underwriters.” Says DeMerchant. “The increase in nuclear liability from $75 million to $1 billion proposed by Bill C-22, coupled with exclusion of nuclear liability in property and casualty policies means underwriters can now participate in our much larger pool of coverage without conflicts.”

With the initial tiered increase to $650 million in nuclear insurance to be legislated in 2015 with the passage of Bill C-22, NIAC is looking for new underwriting partners who are interested in the risk profiles offered by the new expanded requirements.

Bill C-22 is currently moving through Parliament at this time and we anticipate it to pass before the New Year. In past parliamentary sittings, the Federal government has submitted legislation to increase the forty-year-old limit and granting ministerial powers to increase the limit in the future, but have been unable to pass such legislation. In the aftermath of Fukushima and Lac Megantic, the increase in limits up to $650 million is virtually assured.

“With changes in Bill C-22, there’s going to be a substantial growth opportunity for insurance companies in Canada to write more business.” Says Wendy Hayden, Manager, Underwriting & Operations. “With the economy the way it is, there are not a lot of growth opportunities like this in Canada.  There is a good opportunity for all Canadian insurers to participate in the pool.”

Hayden noted that in the past NIAC didn’t need that many insurers in the pool because the $75 Million limit was covered by the insurance companies that NIAC had long-term relationships with.

“Now that we are looking for more insurers to participate in the pool.” Says Hayden. “We need to do a better job of communicating with insurers about the risk profile and underwriting opportunities that we offer. The question is, is there enough capacity to handle a billion dollars worth of nuclear insurance coverage?  And the answer is yes, and we have the resources that will make it happen.”

“In Canada, nuclear power is very important, in Ontario specifically, 60% of the power comes from nuclear energy.” Added DeMerchant, “Almost everything we do, we use electricity for. And as a leading energy player in national and global nuclear insurance, we’re doing our part to keep the lights on.”

For more information, please contact:

• Colleen DeMerchant – General Manager
• Nuclear Insurance Association of Canada
• 416-529-9656
• colleen@niac.biz

 

Established in 1958, NIAC is a voluntary, non-profit, unincorporated association of insurers providing property and liability insurance to nuclear installations operating in Canada. With members who include insurers, reinsurers and Lloyd’s Underwriters licensed in Canada, we specialize in high quality insurance, risk management, underwriting and inspections for Canadian nuclear exposures.

http://www.niac.biz