AXA XL has joined the Nuclear Energy Maritime Organisation (NEMO), a London-based coalition developing frameworks for nuclear-powered commercial shipping as the maritime industry explores alternatives to meet ambitious decarbonisation targets.
The move highlights a critical challenge facing the sector: marine insurers warn that traditional coverage models cannot accommodate nuclear technology – a gap that could prevent nuclear vessels from docking at civilian ports even as the industry races to meet its 2050 net-zero target.
The insurer became a member of NEMO, a group launched in April 2024 that now counts 33 full members including shipbuilders HD Korea Shipbuilding & Offshore Engineering, classification societies Lloyd's Register and Bureau Veritas, and nuclear developers TerraPower and Westinghouse Electric Company.
Vicky Roberts-Mills (pictured above), global head of energy transition at AXA XL, said the International Maritime Organisation has established targets to reduce shipping's environmental impact.
"We know that nuclear energy is part of the answer and, as a leading provider of marine insurance, we believe we have a key role to play in the safe adoption of nuclear applications in the maritime sector," she said.
The move comes as shipping – responsible for 3% of global emissions – confronts what Core Power chief executive Mikal Boe has described as an "insurmountable problem" in decarbonising its fleet by 2050.
A critical obstacle remains. North Standard P&I head of external affairs Mike Salthouse noted that nuclear reactors and vessels would likely be financed, funded and owned separately, whilst the fuel source and decommissioning would also need careful consideration.
"Our insurance models don't really work for the risks shipping will need to assume," Salthouse said.
NEMO has established a third working group concentrating specifically on maritime nuclear liability and insurance. The organisation holds consultative status at the IMO and has been formally invited to attend sessions of the International Atomic Energy Agency's General Conference.
Jarek Klimczak, chief risk consulting officer for specialty at AXA XL, said clients are exploring nuclear technology to power vessels. He emphasised that understanding and helping clients mitigate risks associated with these applications will be necessary to expand such initiatives.
The insurer also participated in the World Nuclear Exhibition on November 6, where it signed the Declaration of Cooperation to Accelerate Nuclear for Maritime Applications.
