Korea Atomic Energy Insurance Pool (KAEIP)
Korean Re leads the Korea Atomic Energy Insurance Pool (KAEIP), which is a voluntary, unincorporated association of non-life insurance, guarantee insurance and reinsurance companies.
In 2018, the KAEIP continued to grow its business, with its total premium income increasing to KRW 51 billion. Its domestic direct premiums expanded modestly to KRW 32.5 billion on the back of a steady increase in the number of nuclear reactors. However, its reinsurance premium income coming from the overseas market remained mostly flat at KRW 18.5 billion. This arose from a decline in global market volume as nuclear insurance market players have been experiencing market softening amid fierce competition among pools, mutual associations and captives.
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 55 reactors are under construction. Among the countries where such construction is underway are China (11 units), India (7 units) and Russia (6 units).
The KAEIP will continue to strengthen its domestic business to ensure stable growth while bolstering marketing efforts in target markets where the construction of new nuclear reactors is underway or where 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 and boost our overall profitability.
Gross Written Premiums: KAEIP
(Units: KRW billion, USD million)
|
FY 2018 |
FY 2018 |
FY 2017 |
FY 2017 |
|
|
Domestic Direct |
32.5 |
29.2 |
31.9 |
28.2 |
|
Overseas Reinsurance Inward |
18.5 |
16.6 |
18.7 |
16.5 |
|
Total |
51.0 |
45.9 |
50.6 |
44.7 |