blutoski
Penultimate Amazing
- Joined
- Jan 10, 2006
- Messages
- 12,454
Unless you are forced to. I'm a good driver and might not insure my car if I had the choice, but the government forces me to.
Yep. Because the value is there. They *don't* force you to get ice cream cone insurance. Reason: there's no value in it.
The insurance companies won't insure nuclear plants because they tend not to insure anything where one event can bankrupt them. Their lack of interest in insuring such an operation is not the result of them expecting such an event, but rather their expectations of the financial damage of a hypothetical event. Claiming that the insurance companies' decision means they expect such an event is misleading.
A distinction without a difference. I hear: "They think it's too risky."
You are making the classic mistake of interpreting an overly-conservative precaution as an expectation for disaster. "Better safe than sorry" does not mean "something bad is likely to happen."
No, I'm repeating the official statements of the insurance providers who have been asked by government to explain why they refuse to provide these types of products. Remember: government wants to buy insurance, too. The firms are not ashamed to explain that they are not ready at this time to insure these activities, as they find them too risky.
I'd like to hear where you got that idea. As we speak, utilities are competing to be the owners of the first new plant in the US. Perhaps you'd like to call the management at Constellation Energy or Dominion and explain to them that they aren't really interested in the programs they are aggressively pursuing.
"owner" meaning "taking full responsibility". I'd queue up, too, for a chance to get all the gravy without all the responsibiliity!
Again, the problem is not that the chance is too high. The US has tens of thousands of reactor years worth of operation without such an event. The problem is that insurance companies don't know how much it would cost them if it did occur, and the prospect of a single event driving them out of business prevents them from offerring insurance. If I'm not mistaken, this has been the philosophy of insurance companies ever since the great San Fransisco earthquake of 1906 effectively wiped out the insurance industry in that region in one fell swoop.
They're not *that* avoidant. An example, again, is launch insurance. There are still some takers, but a lot fewer after the accidents in the 1990s. Two accidents that bankrupted their insurance companies.This proved that the launch industry's track record of safety was not a reliable predictor of future events. The chance of accident was much higher than originally estimated or experienced. Insurance in this industry is now based on more precise methods of prospective analysis, and most players got out of the game entirely. The premiums reflect both the cost and the chance of incidence - all insurance works that way. Again: in some situations, the only underwriter for a launch is government because the risk/cost analysis is uneconomical.
In a technological world of Blue Screen of Death, Mars Rovers that forget to Thin(Km)etric, and loose shuttle tiles, I think we have more to worry about in terms of nuclear power than wiping out the insurance industry.