Satellite insurers to see more than US$400 million in profit this year

Space insurers are expected to generate more than US$400 million in profit for 2009, as long as there are no claims before the end of the year.
The space insurance market has been very profitable over the last five years and this will inevitably lead to more competitive premiums for satellite operators in 2010 as the capacity for space risks continues to increase, according to Aon’s International Space Brokers.
More than US$800 million of premiums are expected to be paid in 2009 for all risks launch and in-orbit insurance.
Five major insured launches occurred in 2009 Q3, which generated an estimated US$154.6 million of premium income for the space insurance market.
Losses occurring so far this year amount to between US$400 and US$450 million, which means insurers will have been profitable for four out of five years, with the only exception being a deficit in 2007, Aon reports.
The favourable market conditions are attracting more capacity into the space insurance market, enabling risks to be placed at better terms due to increased competition.
Because of this, rates to date in 2009 have continued a slow but stead decline.