Committee publication · Correspondence · 15 April 2026
Correspondence from the Department for Energy Security and Net Zero relating to the nuclear third party liability insurance market, dated 26 March 2026
Summary
The Department for Energy Security and Net Zero outlines the government's indemnity scheme to cover a gap in the nuclear third party liability insurance market for long-tail personal injury claims (10–30 years post-incident). The government is offering direct indemnity to nuclear operators at an economic charge, with uptake of €960m in 2026 and a maximum cover of €1.1bn for highest-risk sites.
Key findings
- The 2004 Protocols to the Paris Convention and Brussels Supplementary Convention created operator liability for personal injury claims made 10–30 years after a nuclear incident, effective from 1 January 2022.
- The UK insurance market cannot provide full coverage up to statutory liability limits for this long-tail period; the government decided to offer direct indemnity as the preferred solution.
- The indemnity is offered at an economic charge to operators, with premiums calculated by the Government Actuary's Department and approved by HM Treasury.
- Uptake for 2026 is €960m, covering eligible claims up to a maximum of €1.1bn for the highest-risk sites.
- The government anticipates the insurance market will assume full coverage in future years and will continue market engagement.
Tone
FactualTopics
nuclear-energyinsurance-and-riskpublic-financeliability-and-compensation
Key actors
Bill Esterson MP, Jonathan Brearley, Department for Energy Security and Net Zero, Government Actuary's Department, HM Treasury
Notable line
“… the government decided to offer an indemnity directly to operators, for an economic charge, to cover eligible claims made 10 to 30 years after an incident, up to a maximum of €1.”
Key Quotes
“Following discussions with the government last year, it was determined that the UK insurance market still could not provide coverage up to the full liability limits.”
“The government would only pay for personal injury claims made 10 to 30 years after a nuclear incident.”
“We anticipate and encourage the insurance market to fully assume its role in future years, and we will continue to engage with the market.”
Source · parliament.uk record ↗