German Nuclear Reactor Insurance Association

The German Nuclear Reactor Insurance Association ( DKVG ) based in Cologne is the insurance pool of insurance of German nuclear power plant operators (Atom pool). It has the function of a reinsurance.

History

The first nuclear insurance pools in Europe were founded in Sweden and England in 1955. The founding of the German Nuclear Reactor Insurance Community took place in 1957.

Function and purpose

Even if the probability of large losses in the operation of nuclear power plants has long been regarded as low, the maximum possible amount of loss is extremely large. For these reasons, a single insurance company is typically not able to carry this insurance risk alone. Also the possibility to pass on the risk to reinsurers, fails because of the willingness of insurance companies to take such a risk. Since 2002, the Atomic Energy Act prescribes a limit of indemnity of € 2.5 billion in Germany. For non- covered or not satisfiable amount of claims up to this amount shall be liable under § 34 of the Atomic Energy Act, the federal government.

For these reasons, nuclear energy output in most countries using Founded nuclear insurance pools that take risks together. In Germany this is the German Nuclear Reactor Insurance Community. The organization is organized as reinsurance. For claims initially paid by the respective insurers. DKVG reimburse the damage, by collecting the contributions from their members ( including the said insurer, other insurers in the market and the well-known reinsurers).

Damage over € 256 million up to the amount of € 2.5 billion will be borne by the solidarity of the operators. Beyond this amount, the operator of the injured plants shall have unlimited liability.