Nuclear

The Korea Atomic Energy Insurance Pool (KAEIP), which is managed by Korean Re, is a voluntary, unincorporated association of non-life insurance and reinsurance companies. In 2017, the KAEIP maintained stable performance by writing KRW 31.9 billion in domestic direct premiums. Internationally, its reinsurance premium income increased by 10 percent to KRW 18.7 billion, pushing up its total premium income to KRW 50.6 billion for the year. The growth in its overseas premium income arose from new business in China and the UAE.       

In Korea, there are a total of 25 nuclear power plants (NPPs), with 24 NPPs in operation and one being put into permanent shutdown (Kori Unit 1, shutdown in June 2017). An additional five units are currently under construction. Worldwide, a total of 450 reactors are commercially operational, and 56 reactors are under construction. Among the countries where such construction is underway are China (18 units), India (6 units) and Russia (5 units).

The domestic nuclear insurance market has been growing in size on the back of a steady increase in the number of nuclear reactors. Globally, however, the nuclear insurance market players have been experiencing market softening amid fierce competition among pools, mutual associations and captives, leading to a reduction in market volume. Against this backdrop, the KAEIP will continue to strengthen its domestic business to ensure stable growth while bolstering marketing efforts in target markets where new nuclear reactors are under construction or legislative changes are in progress with regard to the nuclear liability and compensation regime. We believe this strategy will allow us to further grow our nuclear book of business going forward.