KOREA ATOMIC ENERGY INSURANCE POOL(KAEIP)

The Korea Atomic Energy Insurance Pool (KAEIP) is a voluntary, unincorporated association of non-life insurance and reinsurance companies led by Korean Re.

Korea has 26 nuclear power plants (NPPs) across the nation, with 25 NPPs in operation and one NPP permanently shut down (Kori Unit 1, shutdown in June 2017). Currently, an additional 4 units are under construction. Globally, a total of 442 reactors are commercially operational, and 52 reactors are currently being built. Major countries with nuclear reactors are China (10 units), India (7 units), and Russia (4 units).

In 2019, our domestic direct premiums reached KRW 38.5 billion, whereas inward overseas reinsurance premiums stood at KRW 16.7 billion. The domestic primary business has been steadily growing in line with the continued construction of nuclear reactors. In contrast, the overseas reinsurance business is faced with market softening and declining rates, as a greater number of pools, mutual, and captives are scrambling for a dominant position in this highly competitive market, and some nuclear plants remain uninsured for cost reduction.

KAEIP will continue to solidify its position to build up its domestic business. In addition, for further expansion into overseas businesses with improved profitability, we will stay focused on areas where new reactors are being built or local laws governing nuclear liability and compensation are going to be amended.