Ample capacity and stable pricing for space risks

The space insurance market continues to demonstrate ample capacity for most risks, with pricing trends being relatively stable to slightly downward levels, according to Gallagher. However, risks that are more challenging due to satellite health or capacity requirements continue to experience elevated premium ratings and restrictions in capacity, said the broker. In an update, Gallagher also highlighted a growing concern for a satellite operators, namely space debris. It notes that more than 30,000 pieces of space debris are currently being tracked by space surveillance networks, according to a 2022 European Space Agency report. But the report explains that the true number of objects larger than 1cm in size is estimated to be over a million. At the same time, the number of objects being launched into space has grown in the last five years from around 500 in 2018 to almost 2,500 in 2022, with the vast majority of these being launched into low Earth orbit (LEO). Peter Elson, CEO Aerospace, Gallagher, explains that in LEO orbit, spacecraft and debris are moving in different directions and at very high speed – for example the ISS (International Space Station) travels at approximately 17,700 mph and the average piece of orbital debris travels at five miles per second. “Due to this, the energy released in a collision could be enough to completely destroy a satellite and create a large number of further pieces of debris, in turn once again increasing the number of debris objects in that orbit. This potential proliferation of debris is known as the Kessler Effect,” he says. He points out that the ultimate goal is, of course, to reduce the amount of debris in space. Missions to do this are currently in progress, but the sheer scale and expense of this huge clear-up task makes a comprehensive long-term plan to reduce debris very difficult to define. Currently, the primary way to mitigate these risks for satellite operators is to monitor known, trackable debris via Space Situational Awareness data (SSA) and in the event of a predicted conjunction with a piece of debris, the operator will need to decide whether they should manoeuvre the satellite to prevent any collision. “Satellite operators, government agencies and launch service providers have access to improving data to support decisions on collision mitigation. However, because of the volume of small debris not currently trackable, this is not the all-encompassing solution that many would like to see,” says Elson. He adds: “Although the commercialisation of the global space industry has largely been blamed for the increase in collision risks, notably the introduction of mega constellations such as Starlink and OneWeb, we are now seeing a trend in reusability, particularly in the launch vehicle industry, which will significantly reduce the proliferation of debris created by launch vehicles. This reusability will be an important component in managing space debris, however this alone will not solve the current situation and will need to be used alongside a number of other technology developments.” Gallagher says it can offer satellite operators two primary solutions. Firstly, providing a mechanism to transfer risk of damage to a satellite or mission in orbit. Second, third-party liability cover to ensure that in the event of legal action against an operator, these costs and any court awarded damages are covered by insurers. One of the broker’s core products is comprehensive in-orbit cover following launch. In the event of a collision in space (or any other property damage of bodily injury) the owners and operators are provided with full indemnity for all costs to be paid to third parties.

Ample capacity and stable pricing for space risks

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