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5 - Insuring Cross-Border Risks in Commercial Nuclear Energy Production

Published online by Cambridge University Press:  13 August 2025

Louis W. Pauly
Affiliation:
University of Toronto
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Summary

The chapter explores fascinating and intricate collective instruments engaging both private and public actors that have developed over the past seven decades to insure the complex risks associated with the commercial production of nuclear energy. It tells the story of the evolution of the Paris and Vienna Conventions on third-party liability for nuclear accidents. The multifaceted risks involved are reasonably clear, but they are long term in nature. The time horizon for any viable insurance scheme is also therefore extended. While in principle one might imagine that only governments are able to cover liabilities potentially arising from accidents related to nuclear energy production, it turns out that negotiated intergovernmental arrangements enable private insurance providers to play central and expanding roles in much of the world. The incomplete international regime in place today exemplifies a legalized version of collaborative public authority.

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Chapter
Information
Insuring States in an Uncertain World
Towards the Collaborative Government of Complex Risks
, pp. 95 - 127
Publisher: Cambridge University Press
Print publication year: 2025

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