IANSA single crash of a rocket in 2019 cost more than over $411 million to space insurers, who provide insurance cover for space missions. Last year, the total premiums collected in the space insurance market globally was $550-600 million, but claims totalled $1 billion.
With an increasing number of launch failures, communication problems and space debris, space insurance has come to be categorised as a high-risk field of insurance. With India becoming a key space economy, the significance of financial risk coverage for commercial space launch is increasing here too.
He was speaking at the launch of a policy research report titled ‘Financial Risk Coverage of India's Commercial Space Launch Industry: Need for Developing Insurance and Reinsurance Capabilities’ here on Friday.
The report examines the need for a regulatory framework for the financial risk coverage of the space industry in India. The objective is to identify the lacunae in the laws and regulations and propose a regime to meet the risks and challenges associated with high rates of growth and private investment in the space industry.
It also analyses the Indian space industry's financial risk coverage, exploring the current availability of insurance and re-insurance for all participants involved in a commercial space launch, based on feedback from the industry and insurance companies.
Explaining major risks and challenges in underwriting a space insurance policy, Bansal said with new entrants in the space economy, there is a need to balance the interests of the insurers, the state and space startups. Lack of a comprehensive domestic space legislation creates uncertainties, he said. Small size of the private Space market in India and low premium base for insurers are other factors, he said.
He said to bring down premium costs, insurance companies need to start a conversation with the space industry as well as the government, and that India had to build capacities for underwriting Space insurance products.
“We also have to engage with the government and industry to explore the idea of a space liability pool and limit liability of individual companies,” he said. India also must enact a comprehensive domestic Space legislation and draw learning from global peers.
New India Assurance Co is one of the companies that is providing space insurance in India, along with Bajaj Allianz.
The only Indian private space company to have launched a rocket successfully into Space so far is Hyderabad-based Skyroot Aerospace that launched Vikram-S in 2022.
A senior official from private space industry regulator IN-SPACe said the minimum probable loss was calculated for this launch and Vikram-S was insured before the mission.
With an increasing number of launch failures, communication problems and space debris, space insurance has come to be categorised as a high-risk field of insurance. With India becoming a key space economy, the significance of financial risk coverage for commercial space launch is increasing here too.
“India is actively seeking to amplify private sector contributions within its space economy. Rapid increase of satellites in orbit and space debris intensifies the risk of collisions. The high costs of space missions raise the stakes for launch success and space insurance can help in healthy risk management,” said Eshaan Bansal, a research fellow at space policy think tank Spaceport Sarabhai.
He was speaking at the launch of a policy research report titled ‘Financial Risk Coverage of India's Commercial Space Launch Industry: Need for Developing Insurance and Reinsurance Capabilities’ here on Friday.
The report examines the need for a regulatory framework for the financial risk coverage of the space industry in India. The objective is to identify the lacunae in the laws and regulations and propose a regime to meet the risks and challenges associated with high rates of growth and private investment in the space industry.
It also analyses the Indian space industry's financial risk coverage, exploring the current availability of insurance and re-insurance for all participants involved in a commercial space launch, based on feedback from the industry and insurance companies.
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Explaining major risks and challenges in underwriting a space insurance policy, Bansal said with new entrants in the space economy, there is a need to balance the interests of the insurers, the state and space startups. Lack of a comprehensive domestic space legislation creates uncertainties, he said. Small size of the private Space market in India and low premium base for insurers are other factors, he said.
He said to bring down premium costs, insurance companies need to start a conversation with the space industry as well as the government, and that India had to build capacities for underwriting Space insurance products.
“We also have to engage with the government and industry to explore the idea of a space liability pool and limit liability of individual companies,” he said. India also must enact a comprehensive domestic Space legislation and draw learning from global peers.
New India Assurance Co is one of the companies that is providing space insurance in India, along with Bajaj Allianz.
The only Indian private space company to have launched a rocket successfully into Space so far is Hyderabad-based Skyroot Aerospace that launched Vikram-S in 2022.
A senior official from private space industry regulator IN-SPACe said the minimum probable loss was calculated for this launch and Vikram-S was insured before the mission.
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