Satellite insurance
Explore satellite insurance for brokers with insights on coverage, trends, risks, costs, and FAQs. Access a database of specialised insurance products
Satellite insurance provides financial protection for satellite owners and operators against potential losses during various mission phases. Coverage typically includes:
pre-launch: safeguards against risks during assembly, integration, and testing
launch: covers failures or damage during the satellite’s ascent into orbit
in-orbit operations: protects against malfunctions or external threats like space debris
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:
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.
How much does it cost to insure a satellite?
The cost of satellite insurance in Australia depends on factors such as satellite type, value, and coverage needs. Here is a concise breakdown:
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.
How many satellites are insured?
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.
What is the life expectancy of a satellite?
The average lifespan of a satellite is about 10 to 15 years, depending on its design and mission objectives.
How often do satellites need to be replaced?
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.
Who insures satellite launches?
Specialised insurers like Marsh and Munich Re offer coverage for satellite launches. They protect against risks during pre-launch, launch, and in-orbit phases.
How much does it cost to have your own satellite?
The cost of owning a satellite varies based on type and capabilities:
small satellites: construction costs range from $500,000 to $3 million
large military satellites: expenses can reach up to $1 billion
Launching a satellite can cost anywhere from $10 million to $400 million, depending on the type of vehicle used.
What are common satellite insurance coverage options?
Satellite insurance provides coverage for different mission phases, including:
pre-launch insurance: covers construction, transportation, and testing risks before launch
launch insurance: protects against failures during launch or failure to reach orbit
in-orbit insurance: covers operational risks like collisions or technical malfunctions
third-party liability insurance: protects against claims for damages caused by the satellite or launch vehicle
These options help mitigate significant financial risks for satellite operators.
Who typically needs satellite insurance coverage?
Satellite insurance is essential for many stakeholders. Key entities include:
satellite owners and operators
satellite manufacturers
launch service providers
telecommunication companies
government agencies
financial institutions and investors
Australia’s growing space industry shows why satellite insurance is important for everyone involved.
How does satellite insurance help protect clients?
Satellite insurance ensures financial stability and business continuity. Examples include:
2019 Vega Launch Failure: a US$415 million claim followed a satellite loss
2018 SpaceX Falcon 9 Failure: a US$200 million satellite was lost, triggering an insurance claim
2015 Centenario Loss: Mexico’s Centenario satellite loss led to a US$390.7 million claim
These incidents prove how satellite insurance absorbs losses, helping operators recover and continue operations.
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