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Risk in Context Podcast: Risk and insurance considerations for small nuclear technologies

Listen to Marsh specialists discuss the risks and opportunities associated with small modular reactors.

Small modular reactors (SMRs) are increasingly being considered as a means to advance energy security. These compact reactors can also help meet decarbonisation and net-zero goals as well as growing power demands from data centers, remote communities, and major industries.

As demand for SMRs continues to grow, it is important for developers, lenders, and insurers to understand the complex construction process involved, which requires coordination among multiple parties and careful management of liability transfers. Early engagement of risk engineering and insurance professionals is critical to effectively address these complexities and support successful project deployment.

In this episode of Risk in Context, Amy Barnes, Marsh's Global Head of Energy & Power, speaks with Jim Palaia, US and Canada Nuclear Energy Leader, Everett Hansen, US Nuclear Leader, and Ailish Foster, a senior vice president within Marsh’s Energy and Power Practice in London. They discuss why SMRs matter within the energy ecosystem and the opportunities and risks that risk managers should be aware of in their pursuit of reliability, sustainability, and resilience.

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Key takeaways

SMRs offer a transformative approach to nuclear energy

Their compact size, modular construction, and advanced safety features enable SMRs to provide scalable, flexible, and potentially safer power solutions compared to large-scale nuclear reactors.

Small reactors support the evolution of fuel diversification

The development of small reactors is helping to expand the availability of nuclear energy, that can, in turn, enhance energy security, which can be especially critical amid geopolitical challenges.

Insurance adapting to support SMR development

The insurance market is adapting to new construction and operational models through increased stakeholder collaboration, early risk advisory involvement, and innovative coverage solutions.

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