For more on this part of the insurance industry:
1. visit our aircraft insurance page for a look at all products in this sector
2. or focus in on the satellite insurance products available on IB Markets!
Satellite insurance provides financial protection for satellite owners and operators against potential losses during various mission phases. Coverage typically includes:
Recent events highlight the need for satellite insurance. The Intelsat 33e explosion in October 2024 disrupted services in Australia and beyond. This coverage provides financial security and operational support in today’s complex space industry.
Space debris creates major risks for satellites and causes severe damage or loss. Despite advances, launch failures remain a significant concern, requiring comprehensive insurance. Alongside these risks, trends are affecting the satellite insurance industry:
advanced technology for claims: insurers use satellite data and aerial imagery for faster damage assessments after natural disasters
increased commercial satellite launches: the rise in small satellite deployments is driving demand for satellite insurance
leveraging satellite data for risk: earth observation technology enhances risk prediction and disaster management, supporting data-driven insurance strategies
In Australia, trends reflect global priorities, focusing on risks like space debris and cybersecurity. Increased commercial satellite launches and growing investments in space infrastructure show the importance of tailored satellite insurance solutions.
The cost of satellite insurance in Australia depends on factors such as satellite type, value, and coverage needs. Here is a concise breakdown:
pre-launch insurance: costs range from hundreds of thousands to several million dollars
launch insurance: premiums typically range from 15% to 25% of the satellite’s total insured value
in-orbit insurance: annual premiums are generally 1% to 3% of the satellite’s value
combined policies: comprehensive plans for launch and in-orbit phases may offer cost savings, with total premiums for a $200 million satellite often under $30 million for the first year
Total costs for satellite insurance can range from a few million to tens of millions of dollars, based on the project’s specifics and coverage extent.
Out of around 10,000 satellites currently in orbit, only about 300 are insured.
Most insured satellites are in geosynchronous orbit (GEO) due to their high value. Smaller, less expensive low Earth orbit (LEO) satellites are often uninsured.
The average lifespan of a satellite is about 10 to 15 years, depending on its design and mission objectives.
Satellites are typically replaced at the end of their operational life, usually every 10 to 15 years. However, technological advancements and mission requirements can influence replacement frequency.
The cost of owning a satellite varies based on type and capabilities:
Launching a satellite can cost anywhere from $10 million to $400 million, depending on the type of vehicle used.
Satellite insurance provides coverage for different mission phases, including:
These options help mitigate significant financial risks for satellite operators.
Satellite insurance is essential for many stakeholders. Key entities include:
Australia's growing space industry shows why satellite insurance is important for everyone involved.
Satellite insurance ensures financial stability and business continuity. Examples include:
These incidents prove how satellite insurance absorbs losses, helping operators recover and continue operations.
