Category Risk Management

Aon SA awarded pebble-bed modular reactor risk business

27 March 2006 Cathy Findley Public Relations

Aon South Africa has secured the contract to provide risk-management advice and insurance services for South Africas ground-breaking pebble-bed modular reactor (PBMR), a massive capital investment and development project whose successful deployment is destined to make a significant contribution to South Africas energy requirements.

With PBMR now testing all components ahead of the construction phase commencing in 2007, the requirements of a risk consultant are technically complex, global and multi-faceted. The value of the tender, which was secured against more established competitors, has not been disclosed, but encompasses vetting all PBMR contracts from an insurance perspective, assisting in the development of an enterprise-wide risk framework which includes traditional and non-traditional risks for the whole project through planning, construction and commissioning and supplying comprehensive insurance services.

Guy Scott, CEO of Aon SAs risk services division, says Aons global expertise, experience and resources were instrumental in this appointment. Global resources are essential in the nuclear insurance area. Worldwide capacity requirements along with international technology standards require a broker with global resources and nuclear expertise. Aon has a strong network of local offices and companies around the world and is the leading broker for nuclear coverage globally, including plants in Korea, Spain, China, Mexico and the US, among others.

The nuclear group within Aon has very broad experience in all areas of nuclear insurance such as:
Construction and operating risks
Liability insurance both within and in addition to international regimes
Property exposures unique to nuclear activity
Fuel-fabrication and fuel-enrichment coverage
Reinsurance of alternate markets dealing with nuclear issues.

Aons specialist nuclear team has the proven technical expertise to deal with insurance issues relative to nuclear technology. Scott elaborates, Original exposures and coverages are unique for nuclear operators and nuclear service providers. In addition to more traditional exposures faced by nuclear utilities, Aon can effectively deal with exposures that are unique to nuclear activity including decontamination, premature decommissioning and specialised machinery breakdown.

Aon SA is also the contracted risk consultant for leading African power utility Eskom. Eskom is the PBMR Companys first client, with commissioning of the Demonstration reactor scheduled for 2010.

Building on our proven capabilities in the power and nuclear insurance fields, we are pursuing other opportunities in these sectors, says Scott.

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