Insurance and the public–private management of risk at US commercial nuclear power plants

Abstract

AbstractThis article examines the public–private partnership between the federal government, private insurers, and power companies that enabled the development of commercial nuclear power generation during the 1950s and its evolution to the present day. The public–private process of nuclear insurance development and its impact on nuclear safety is examined through the lens of the Price–Anderson Act enactment and subsequent renewals. The purpose is to show how commercial nuclear insurance evolved over time, and how the indemnification of potentially catastrophic losses influenced the safety behavior of operators, regulators, and other institutions. Evidence is presented demonstrating the relationship between nuclear insurance and safety, using insurance liability and property premiums, and key measures of nuclear safety.