CommercialSpaceandLaunchInsuranceCurrentMarketand.pdfVIP

Fourth Quarter 2002 Quarterly Launch Report 8 Commercial Space and Launch Insurance: Current Market and Future Outlook INTRODUCTION Third-party liability and government property insurances protect launch service providers and Since our last review of the space and launch their customers in the event of public injury or insurance industry (see Update of the Space government property damage, respectively, and Launch Insurance Industry, 4th quarter, caused by launch or mission failure. In the 1998 Quarterly Launch Report), many changes United States, Federal Aviation Administration have occurred in the market. This report regulations require that commercial launch endeavors to examine the current market situa- licensees carry insurance to cover third-party tion and to explore what causes insurance mar- and government property damage claims that ket changes. We also examine how and why might result from launch activity. Because this market moves over time and discuss the these insurances are obtained from a different future outlook for space insurance. pool than the previous types of coverage, these insurances are beyond the scope of this report. For more information on licensee financial responsibility requirements, liability, and U.S. OVERVIEW OF SPACE INSURANCE liability risk-sharing regime, please see U.S. Department of Transportation/Federal Aviation The insurance market for the commercial Administration, Liability Risk-Sharing Regime space transportation industry is a global one, for U.S. Commercial Space Transportation: with satellite owners, satellite manufacturers, Study and Analysis, April 2002.