NEIL traces its roots to 1973 and the formation of Nuclear Mutual Limited (NML) in Bermuda. The Company has grown tremendously since its formation and issuance of the first property policies. NEIL currently issues property policies with limits totaling up to $2.75 billion along with business interruption coverage of approximately $490 million.
NML was formed by a group of U.S. electric utilities as an alternative to the commercial nuclear insurance market. Its initial policy provided $100 million of property coverage. The Company had minimal surplus at formation and relied heavily on its right to call a retrospective premium assessment of up to 14 times each insured’s premium in case of a large loss.
NEIL was formed in 1980 in response to the accident at the Three Mile Island Nuclear Station. Its initial policies were issued for extra expense coverage resulting from accidents at insured sites. In 1981, NEIL began issuing excess property policies to complement the policies being issued by NML. By 1984, NML and NEIL's total property limits exceeded $1 billion.
In 1988, the Companies moved their operations from Bermuda to Wilmington, Delaware and in 1997 NML was merged into NEIL.
Over the years, NEIL has increased the limits in each of its programs. NEIL currently provides limits of $1.5 billion per site on its primary program, and limits of up to $1.25 billion per site in its excess program. The Company also offers limits up to $490 million for accidental outage on each insured unit. NEIL's insurance expressly responds to the Nuclear Regulatory Commission Property Rule that requires nuclear power plants to be insured for at least $1.06 billion.
In late 1998, the Company expanded its operations to insure approved overseas nuclear power plants and formed NEIL Overseas in Ireland, which commenced operations on January 1, 1999. NEIL Overseas' Irish insurance license authorizes it to provide insurance in the other countries in the European Union. NEIL Overseas presently provides insurance to Electrabel, S.A. on its two sites in Belgium, and the utilities (Nuclenor, Gas Natural SDG, Endesa, Iberdrola, and Hidroelectrica del Canatbrico) that own or operate all the commercial nuclear plants in Spain. NEIL reinsures NEIL Overseas for up to $2.75 billion. NEIL’s Membership requirements will be upheld in determining whether other non-U.S. Nuclear Insureds of NEIL Overseas will qualify for Membership in NEIL. NEIL Overseas also provides limited coverage on Electrabel’s interests in two Electricité de France sites, and reinsures risks in other countries including Japan.
In 2001, NEIL expanded its insurance product lines and began to provide conventional insurance coverages to its Members. NEIL decided to provide this coverage as a service to its Members, but will do so under strict guidelines with respect to the amount and type of risk the Company will accept. In 2010, NEIL issued two Builders’ Risk Insurance Policies for new nuclear facilities in the United States – Vogtle 3 & 4, and Summer 2 & 3.
NEIL Members own and control NEIL, hold all the rights to vote for the election of the directors, have rights to policyholder distributions as declared by the Company and to share in the Company's assets upon liquidation. Each Member has one Member's Representative to represent it, and vote on its behalf, at NEIL Annual and Special General Meetings. NEIL has about 85 Members, with some Members being related through a common parent company, and provides some form of insurance for all nuclear power plants in the United States. NEIL is governed by a Board of Directors that meets every quarter. Input to the Board is provided through the three Members' advisory committees: the Engineering Advisory Committee, the Insurance Advisory Committee, and the Legal Advisory Committee.
In addition to NEIL Overseas, NEIL’s also has a wholly-owned operating subsidiary named NEIL Services. NEIL Services performs engineering, loss control and claims functions on behalf of NEIL. NEIL Services conducts periodic plant evaluations for NEIL on boiler and machinery risks and property/fire risks at insured plants. NEIL Services also provides claims management services and is NEIL’s primary claims adjustment consultant for nuclear claims.