The world’s insurance market gathered at the World Space Risk Forum held in Dubai on 28 February – 1 March. Organised by the Dubai-based insurer Elseco, the forum has now become the main biennial conference for space insurers. David Todd reports on the discussions,
Annual in-orbit cover remains unloved: operators really want multi-year deals and revenue insurance
In fixing the underwriting errors of the late 1990s and early 2000s,the space insurance market has had a series of mainly profitable years. Meantime, as the commercial demand for bandwidth hungry high definition television and broadband mobile services has grown which even the military makes use of, so has the demand for new large communications satellites. As a result the insurance market is set to benefit from insurance premium given that most major operators tend to insure the launch and first year in orbit.
Recent years have been profitable on a gross basis for space insurance. Source: Ascend SpaceTrak and market estimates
Despite this rosy picture for world commercial space growth and space insurance, the conference remained concerned that only 58% of commercial satellites are insured in orbit. This has been apparently due to the perceived unattractiveness of the annually renewed in orbit ...