Clifford Blayney, Markel International

Nuclear: Insurance sector’s role in the region’s nuclear renaissance

Clifford Blayney, Markel International

October 21 2025

The biggest driver of nuclear expansion in Asia is the massive increase in power demand from data centres, while the real transformation will be driven by small modular reactor technology.

Until recently, nuclear energy in Asia was largely the domain of India, China and Japan.

Today, momentum is building across the region: Indonesia, Vietnam, Philippines, Malaysia and Thailand are among those actively planning or studying how they can bring nuclear power into their energy mixes.

Even land-scarce Singapore, which once ruled out nuclear, has invested SG$66 million into setting up a nuclear research centre. Visiting the island-state in August 2025, the International Atomic Energy Agency’s chief remarked that Singapore’s strong technical capabilities put it in a position to deploy nuclear power in a few years if it decides to proceed.

Asia’s commitment to nuclear energy has fluctuated over the decades, influenced by factors such as government support, energy security and public opinion – especially after events like Japan’s 2011 Fukushima disaster.

Japan, once intent on phasing out nuclear, is now seeing broad cross-party backing and has restarted 14 reactors since the disaster.

In July, Kansai Electric Power announced it will begin studying plans for a new nuclear power reactor – the first such initiative since the incident.

Recent events have compelled Asia to reassess the role of nuclear power in their energy mix.

Governments are grappling with the real-world challenges of achieving net-zero emissions while maintaining reliable energy supplies.

The cost concerns are also significant, as evidenced by the spike in global energy prices triggered by Russia’s invasion of Ukraine, which has resulted in rising gasoline and electricity bills that are weighing heavily on households.

This has exposed the vulnerability of countries that rely heavily on imported resources.

However, the biggest driver of nuclear expansion in Asia is the massive increase in power demand from data centres, which are essential for the growth of artificial intelligence (AI).

It is estimated that a typical AI-focused data centre consumes as much electricity as 100,000 homes.

The chip industry, closely tied to the data centre sector, is also driving demand for nuclear power. Taiwan, home to the world’s largest chipmaker, TSMC, celebrated its “nuclear-free homeland” in May this year after shutting down its last operational nuclear reactor.

Yet shortly after, authorities passed an opposition-backed proposal to hold a referendum in August to decide whether to restart the plant.

Big tech companies are investing heavily in energy-hungry data centres across Asia, with many, including Amazon, Microsoft and Google, having to tap into clean energy to power these facilities and achieve their decarbonisation commitments.

Nuclear power, providing stable, low-carbon baseload generation, is being considered as a key enabler alongside intermittent renewables.

The SMR revolution

The nuclear renaissance will look different to the nuclear we see today.

Gigawatt-scale, bespoke power plants will continue to play their role, with around 70 new nuclear reactors under construction globally, with around 100 more planned, the majority of which are in Asia.

The real transformation, however, will be driven by small modular reactor (SMR) technology.

SMR’s promise scalable manufacturing, lower costs, and shorter build times, making them attractive for emerging markets.

In 2024, the US Department of Energy began government-to-government talks on SMRs with the Philippines, Singapore, and Thailand; the Philippines has set a target for its first nuclear plant to operate by 2032 and is in active cooperation with international partners.

SMRs are advancing globally: Canada’s first commercial SMR at Darlington is set for 2028, and similar deployments are scheduled in the US and Europe by early next decade. What’s clear is that while SMRs are still emerging tech, they’re no longer theoretical – they’re being built, financed and, in some places, already delivering power.

However, regulatory harmonisation remains a challenge and with the likely development of multiple SMR models, cross-border regulation may prove challenging.

The other key component to the nuclear renaissance will be in the form of nuclear fusion.

If commercialised, fusion holds the promise of clean energy without the waste and risk profiles associated with today’s fission reactors. But while prototype fusion reactors exist, scientists haven’t yet generated sustainable electrical power with them. That breakthrough could be only five years away – or as long as 30 years.

Supporting nuclear development

The nuclear industry’s safety record has improved immensely in recent decades, with highly stringent engineering standards and strong regulatory oversight now making it the second safest form of power after solar and the cleanest form of energy production.

The insurance sector is poised to play a central and enabling role in Asia’s nuclear expansion.

As countries in the region move from exploration to active planning and construction – especially with a focus on SMRs – they will require innovative risk transfer solutions.

These solutions are critical to attract investment, satisfy evolving regulatory requirements, and build public confidence in nuclear projects.

Nuclear liability coverage for SMRs is yet to be determined by international conventions, and therefore the limits and requirements provided by Insurers are still to be realised.

Given Asia’s diverse regulatory environments and the variety of emerging nuclear technologies being considered, insurers will need to craft flexible products that can respond to new operational risks and cross-border considerations.

Now is the time for the commercial insurance market to lead with purpose.

By collaborating with governments, nuclear operators and sector experts, insurers can innovate new products, expand capacity and can cement their place at the heart of a safe, resilient and sustainable future.

This cooperation will be essential to underpin a safe, resilient, and sustainable nuclear renaissance in Asia, supporting the region’s clean energy transition and energy security goals.

Clifford Blayney is head of power and offshore sustainable energy for Markel International

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