Space risks insurance market (Part 2)
4 April 2008In September, 1984, in result of supernumerary work of a step «Centaur» of BR «Atlas-Centaur» “Intelsat F-9″ was lost. The sum of insurance compensation has made 102 billion dollars.
Thus, within 1984 three insured SVs were lost. Four SVs were lost in 1985 and three of them were insured. SV «Syncom IV-3» has not been put into operation after branch from «Space Shuttle», later during other flight «Space Shuttle» it has been deduced into a working orbit and put into operation. Nevertheless, compensation in 85 million dollars has been paid. Destruction of SV “Syncom IV-4″ for the unknown reason after successful start and orbital checks cost to insurers in 84 million dollars.
Thus, during 1982-1988 international space risks insurance market stays in quite uncertain state.
As a whole, for the period since 1984 till 1989 regular unprofitability was observed in the marked. Insurance compensation exceeded the sizes of the collected insurance premium. Thus 1989, when premiums and compensation were made even then down to 1998 collected premiums exceeded insurance compensation, became the critical year in space risks insurance market.
During 1989 -1994 market situation was stable. The market capacity met needs of operators. The majority of insurance premiums acted from insurance of starts of SVs from BR «Ariane». Thus specified BR had only one emergency start («Ariane-V36», on February, 22nd, 1990) in a series from 35 starts for last 5 years.
1994 became the hardest year from the moment of the beginning of space risks insurance and on results of this year the market has incurred the loss in 198 million dollars. About 75 % of insurance payments have been caused by refusals of third step of BR «Ariane-4».
In 1999 the international insurance market became the witness of the first successful start under the program «Sea Launch» (on March, 28th).
In 2000 31 starts have been carried out. This year has begun with two starts, which are still remaining of great importance for the insurance market:
* On February, 12th SV «Garuda-1» has been put successfully into orbit from BR “Proton”. The insurance sum made 478 million dollars and it was the highest insurance sum for the individual SV start;
* On March, 21st BR «Ariane-5» has carried out the first successful start of two SVs «Insat-3B» and «Asiastar-1».
As a result, in 2001 growth of rates, reduction of volumes of an insurance covering and change of conditions of insurance of start and operation in an orbit were observed. A lot of projects were insured not on 100 % of the insurance sum, but only on 75-80 %.
In 2002 27 starts are carried out, including 21 successful commercial starts.
First three quarters of year were encouraging for the insurance market: all starts were successful except for failure of BR “Union” on October, 30th, which has rendered extremely insignificant influence on the insurance market.
Thus, 2002 was marked by continuation of constructive refusals and destructions КА on platforms Boeing-702, Boeing-601, Spacebus-3000, Spacebus-2100 and LS-1300.
Besides during settlement by the market claims approximately on 1.7 billion dollars for 6 КА on platform Boeing-702 continue to be.
In 2003 the market of insurance was characterized by following features:
*Rates on start remained high - from 20-23 % up to 28-30 %;
*Insurance coverings of operation risk deviated from 2.7 up to 3.7 %;
*Risks’ accommodation collided with insufficient market capacity;
*Overcautious persons were inclined to adhere to their market share irrespective of the insurance sum;
*The tendency to reduction of coverings’ duration has proceeded - standard coverings last no more than for 12 months; there were rigid requirements on stocks of fuel (in 1 year) and energy (7.5 % in the end of term of active existence), full constructive destruction (75 %), exception of “serial” refusals, introduction of franchises;
* Rates’ quotations were given for short term - from 7 till 30 days, or up to the first insurance case in the market, but not earlier than 12 months before the start.
2004 has continued to a turn of unpleasant events for space risks’ insurers. For example, on January, 11th, SV «Telstar-14», after deducing of SV «Telstar-14» into orbit one of solar batteries has not revealed.
- Space risks insurance market (Part 1)
- Insurance market has passed a boundary
- Life insurance policy (Part 1)
- Insurance risk-management in the countries with transitive economy
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