Space ports to herald next frontier of risk
The development of spaceplanes and space ports could require a new approach for underwriters, according to a report by Lloyd’s. Under government plans, the UK could have its first space port up and running by 2018.
Demand for space and satellite services continues to grow, while the space industry is becoming more global, Clive Smith, head of space at Aon, said in the report. At the same time, emerging low-cost space launches and satellite technology is all set to make space more accessible and more cost effective in the future, he said.
“The Lloyd’s market has already insured commercial launchers, including test flights and third party liability cover for many of the launch service providers including the likes of Virgin Galactic and Space X,” said Smith.
“The market has also insured space tourists en route to the International Space Station, and consider that it has all the expertise required to insure space tourists leaving from a UK space port in the future, he says,” said Lloyd’s.
Smith added that spaceplane insurance might require a new approach. Launches are currently insured on a flight by flight basis, but spaceplanes could be more suited to an annual policy style of insurance like that used in the aviation sector.
The number of space risks launched each year is very small, so any increase would be beneficial to insurers, explained David Wade, space underwriter at Atrium Space Insurance Consortium in the report. However, space debris is of growing concern and launching more small-satellites to the already crowded low Earth orbit is expected only to exacerbate that problem, he said.
“In addition to launch and satellite insurance, launch service operators would also likely require third party liability insurance, although this would need to recognise the new technology and launch sites to be used,” said Wade.
“Space ports are also expected to need their own cover. This would likely be an extension of that currently provided to airports but would need to take into account some new elements unique to spaceports, such as the storage of more exotic propellants.”
