Next‑Generation Nuclear: Global trends, risks and opportunities for Insurers

As global energy systems come under intensifying pressure, from geopolitics to surging electricity demand driven by AI, electrification and industrial growth, nuclear power is re‑emerging as a central pillar of long‑term energy strategy.

In a recent insurance webinar on emerging risks, speakers from across our international network explored how next‑generation nuclear technologies, including small modular reactors (SMRs), are beginning to reshape policy, regulation, infrastructure and insurability across key markets.

A new global energy landscape

The push toward next‑generation nuclear is unfolding against a backdrop of volatile global energy prices, heightened energy security concerns and mounting pressure to decarbonise. Traditional fossil fuel markets have proven vulnerable to geopolitical disruption, prompting jurisdictions worldwide to revisit nuclear energy not only as a low‑carbon solution but as a source of stable, dispatchable baseload power.

Across the United States, Europe and emerging nuclear jurisdictions, interest in new nuclear technologies is accelerating, not only in large‑scale reactors but increasingly in SMRs, which promise enhanced flexibility, reduced construction risk and a more scalable deployment model.

The United States: A renewed nuclear landscape

There’s a growing American appetite for nuclear amid growing electricity demand from AI and data centres. Several states are now revisiting their long‑standing nuclear policies.

1. Data centres are driving demand, proposals from tech giants, including direct power‑purchase agreements tied to nuclear plants, have catalysed renewed attention on both legacy reactors and new technologies.
2. State-by-state inconsistencies persist with whilst many states maintain nuclear moratoria even as they pursue aggressive clean-energy targets, prompting legislative moves to carve out exceptions for advanced reactors.
3. Insurance frameworks are evolving with updates to the long‑standing Price‑Anderson Act now account for SMRs, creating proportional liability and insurance requirements more suitable for smaller-scale installations.

This evolving policy and insurance environment is positioning the US as a key driver in next‑gen nuclear deployment.

Poland: Building a nuclear future at speed

Poland is transforming into one of Europe’s most ambitious nuclear newcomers. Faced with the decline of coal and the need for energy security, Poland is pursuing a dual track of large-scale reactors alongside industrial SMRs.

Key developments include:

• Multiple Generation III+ reactors planned, with the first large plant using AP1000 technology targeted for mid‑2030s operation.
• Significant SMR momentum, driven by major industrial players seeking to decarbonise operations.
• A rapidly maturing legal and regulatory framework, aligned with IAEA standards and incorporating phased permitting, revenue‑stabilisation mechanisms and streamlined siting rules.
• Growing geopolitical importance: Poland is positioning itself as a strategic nuclear fuel and component transit hub for Central and Eastern Europe as the EU seeks to diversify away from Russian supply chains.

Although Poland remains a first‑of‑a‑kind jurisdiction with no prior commercial nuclear experience, its structured, conservative regulatory approach and strong alignment with Western partners provide meaningful stability for insurers and investors.

France: Leveraging a mature nuclear ecosystem

France enters the next‑gen nuclear era from a position of longstanding nuclear maturity. With one of the world’s largest operating fleets and deeply embedded nuclear expertise, the French strategy focuses on:

• Rolling out new EPR2 reactors
• Modernising existing infrastructure
• Advancing SMR and advanced reactor R&D
• Maintaining a stable, highly codified liability and insurance regime under the Paris and Brussels Conventions

France’s well‑established statutory frameworks, including mandatory operator liability, strict liability rules, and specialised jurisdictions; provide a stable foundation for integrating future SMR and advanced nuclear technologies.

The Netherlands: Dual track expansion

The Netherlands’ two‑pronged approach: investing in large conventional reactors while preparing the ecosystem for SMRs as the technology matures.

Notable features of the Dutch strategy include:

• Clear government prioritisation of repeat builds over first‑of‑a-kind risk
• Long-term system planning to integrate up to 14.5 GW of nuclear by 2050 (subject to cost feasibility)
• A robust Paris Convention‑aligned insurance architecture
• The highly coordinated Dutch nuclear insurance pool, interconnected with international pools to manage aggregation risk

For insurers, opportunities lie in pre‑commissioning lines (construction and erection risks) and transport insurance, alongside the eventual operational risks.

United Kingdom: Reinvigorating a declining fleet

The UK’s ambitious plan to revive its nuclear contribution, which has fallen sharply since the 1990s. The Civil Nuclear Roadmap to 2050 aims to deliver:

• 24 GW of nuclear capacity by 2050, around a quarter of expected electricity demand
• Deployment of SMRs, led by Rolls‑Royce following a competitive process
• A first SMR site at Wylfa, North Wales, announced in 2026
• A new public‑private partnership model, designed to attract investment while managing risk

Challenges remain, particularly around workforce shortages, waste management, security considerations and underwriting new technologies; but the UK’s structured, government‑backed approach presents significant opportunities for insurers involved in project risk, construction, liability and operational lines.

A global shift: Opportunities and risks for Insurers

Across global markets, the rise of next‑generation nuclear technologies is reshaping both the opportunities and the challenges facing insurers.

As nuclear development shifts from predominantly government‑owned models to mixed public‑private financing, demand is growing for new and specialised insurance solutions, including:

• Completion and construction risk
• Supply chain and transport cover
• Decommissioning guarantees
• Liability frameworks scaled to reactor size, particularly for SMRs

These changes are driving the need for fresh insurance approaches as first‑of‑a‑kind projects move forward without established operational histories.

Despite variations in national policy and regulatory structures, the overall trend is clear: nuclear power is re‑establishing itself as a critical pillar of energy security, decarbonisation and resilience and insurers will play a pivotal role in enabling this transition.