INTRODUCTION

Insurance is not often considered as an element of space activities, but satellite insurance has been around since the launch of the Early Bird satellite in 1965. Today, the cost of insurance can exceed 25% of the lifetime cost of a communications satellite program.

Space insurance has traditionally been bought by the owners and users of geostationary communications satellites. Therefore, technical and risk analysis by space insurance companies normally concentrates on the factors that can affect those satellites.

The space insurance community does not currently view the risk posed by orbital debris as particularly significant to its own business. This is due to two factors in particular – the geostationary orbit used by the vast majority of insured satellites, and the relatively insignificant contribution of the perceived probability of damage from debris to the overall rates charged by insurers for the insurance coverages offered.

These conditions will not continue, however, as the market for space insurance expands to include the many low-earthorbiting systems proposed for this decade and beyond. In total, these proposed systems represent several hundred satellites. While it is unlikely that all of the systems will be launched, there will certainly be a significant increase in the number of commercial low-earth-orbiting satellites in the not-too-distant future. This additional exposure for insurance companies is certain to become a matter of concern.

THE INSURED SATELLITE POPULATION

In the meantime, geostationary satellites comprise the vast majority of insured risks.