TechTalk: Insurance sector an ‘active partner’ in the nuclear renaissance

Those paying attention to the subject of energy – or, more specifically, how our societies generate it – may have heard the phrase “nuclear renaissance” recently. 

Previously, nuclear was something of a dirty word, especially by association with weapons of mass destruction and catastrophes such as the Chernobyl disaster in 1986.

But, more recently, demand for plentiful, carbon neutral electricity has seen a revival in global interest around nuclear power – as well as concrete steps to increase its production. 

More than 40 nations announced plans to expand or introduce nuclear projects in 2025, with nations like Germany reversing long-standing anti-nuclear stances and UK energy secretary Ed Miliband announcing that the government had “only just begun when it comes to ambitions for new nuclear”. 

On top of growing need for the energy that nuclear can generate, new technologies in development, like small modular reactors (SMRs), or at the research stage, like nuclear fusion, promise even more return on investment and, in the case of fusion, present the opportunity for genuinely world changing capabilities.

Rising enthusiasm for a technology saddled with connotations of risk presents an opportunity for the insurance sector to provide its expertise and help manage a true energy revolution.

But, to take this opportunity, insurers and brokers must be aware of the specific challenges of insuring the nuclear renaissance.

Nuclear upswing

The time horizons for nuclear construction projects can be long, with expensive investment needed to break ground. Sizewell C, a UK project to construct a 3,200 megawatt nuclear power station in Sizewell, Suffolk, commenced in 2024 with expected costs of £38bn and will take a minimum of 10 years to come online. 

But a combination of factors – geopolitical, industrial and technological – have made significant undertakings like this look like sensible investments for the future. 

Denis Bensoussan, head of space at specialist insurer Beazley, told Insurance Times: “There is huge demand for energy coming from the development of new activities, including AI and data centres, but also the ongoing emergence of electric vehicles at scale and the global push on manufacturing and robotics. 

“Therefore, we need to expand energy production at scale through nuclear energy – both through traditional means and through new transition sources like small modular reactors (SMRs) and fusion. 

“The energy sector is growing and transforming at a fast pace. Traditional insurance mechanisms and solutions need to adapt to new risk profiles, while insurers need to take a pre-eminent role in enabling and supporting the new energy sources.” 

Clifford Blayney, head of power and offshore sustainable energy at Markel, added: ”The nuclear resurgence is being driven by a combination of a few things, including net zero, desire for energy security, worldwide electrification and new demand, especially coming from the game-changer of artificial intelligence and associated data centres.

“Brokers need to be conscious of the fact that nuclear is no longer a niche risk – it’s a fast, evolving and growing space in which new players are becoming involved. It’s the second largest provider of low emissions power globally, just after hydroelectricity, and the world wants to get to net zero.

”Nuclear power is very much a stable base load for consistent supply that, alongside renewables and other sources, will form part of that net zero path.” 

Three pronged trident

As the nuclear renaissance picks up steam, the industry will have to respond to a selection of challenges involved in insuring such a “unique line of business”. 

Blayney explained that there were “three prongs” to the nuclear trident, each requiring a specific approach from the insurance sector. 

The most simple aspect of nuclear growth will involve the expansion, new construction and extension of traditional large scale nuclear power plants, such as with Sizewell C or the life extension of neighbouring Sizewell B, which energy company EDF recently announced it was negotiating with the government. 

The insurance sector has extensive experience in this area and should find it simple enough to respond. But it is across the other two prongs that innovation and ingenuity will be required.

Blayney said: ”Outside of the traditional piece, the SMRs are more exciting for a lot of people. These are a third of the size of traditional nuclear power plants and are modular, so have the same design and a scalable model, meaning they can be used in multiple locations, replicated and installed worldwide.

”That comes with challenges, such as scalability and the associated manufacturing, or from operating in different jurisdictions, but also creates opportunity where cost is brought down through economies of scale.” 

While SMR projects are currently under construction across countries like Japan, the US and the UK, nuclear fusion is further off. 

The third prong of the trident, or the “holy grail” of power generation, remains in the research stage but, once cracked, could represent “the nation’s future” for power generation. As opposed to traditional nuclear fission, which generates high amounts of energy from radioactive materials such as uranium, fusion generates energy through the same reaction that powers the sun and stars.

Crucially, this technology can output more energy than is required to maintain the reaction, essentially creating a limitless form of clean power.

In its predictions for 2026, released in December 2025, Beazley predicted this year “could be the year we learn of the successes of the first tests of commercial nuclear fusion plants”. 

Indeed, October 2025 saw insurer Tokio Marine GX and specialist MGA Northcourt, part of Optio Group, launch a dedicated Lloyd’s market insurance facility for nuclear fusion technology.

Bensoussan explained: ”Traditional fission nuclear facilities are very costly and take a long time to develop. While demonstrably safe, they create systemic risks that need to be covered through pools due to the larger exposure. 

“SMRs and fusion plants are inherently safer to operate, will be more numerous and will benefit from more favourable and supportive regulatory environments, which is already the case in the US and UK. As a result, they will present lower exposures, making them a better fit for a more competitive and diverse insurance market.”

An active partner

As these new technologies come online alongside the expansion of existing nuclear capabilities, the insurance sector will have to respond not just as a provider of indemnity, but as a risk partner. 

Blayney explained: “There’s huge upside and growth to nuclear. But for any industry to succeed, you need a lot of stakeholders. 

“Insurers are very important stakeholders. Investment into new SMR technology wouldn’t necessarily happen if there wasn’t an insurance industry able to support by offering that risk transfer process. 

“Nuclear, especially, is very high profile and insurance is a key part of that, so we are viewed slightly differently versus other lines of business. We’re not just a passive risk transfer partner – we are an active partner when it comes to understanding the risks involved, the coverage the needs to be in place and in working with government, developers, operators and brokers to make sure that products exist to allow these new technologies to develop.” 

Bensoussan echoed this sentiment. He added: ”Innovative and supportive insurance solutions are required to allow the construction and operation of SMRs and fusion plants. The major challenge will be for insurers to design performance warranty solutions that support the industry and the large energy supply contracts already agreed with the hyperscalers and utilities.”