1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Analyst: Space Insurance Rates Going Up

Discussion in 'General Satellite Discussion' started by FTA Michael, Mar 24, 2008.

Thread Status:
Not open for further replies.
  1. FTA Michael

    FTA Michael Hall Of Fame

    3,474
    4
    Jul 21, 2002
    Just like anywhere else, if you have too many accidents, then your insurance goes up.

    "Claims for 2007 are estimated to reach $835 million, which includes the failure of the Sea Launch rocket carrying the NSS-8 satellite in January and the September Proton failure that destroyed JCSat-11."

    More at this Satellite Today article: http://www.satellitetoday.com/st/topnews/22481.html
     
  2. Grentz

    Grentz New Member

    5,916
    1
    Jan 10, 2007
    Not really a shocker. 2 failed launches equals higher rates in the future.

    Pretty logical :)
     
  3. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

    45,744
    985
    Apr 17, 2003
    Michiana
    The only way insurance companies make money is to collect more in payments than they pay out. With those two major launch providers having downtime not only were there payouts but there were less launches to insure (less premiums paid).

    DISH has "self insured" for the last few years when it was determined that the cost of insurance was higher than the cost of losing a satellite. It will hurt when they lose a satellite, but overall they are saving money. Insurance is good for the smaller companies that can't absorb a loss.

    While satellites are expensive there are a lot of big companies that self-insure their business. Every time rates go up it convinces more companies to take the risk on themselves.
     
  4. tcusta00

    tcusta00 Active Member

    7,911
    1
    Dec 31, 2007
    I didn't even know there were insurance companies out there willing to insure such expensive things... but I guess if you've got the money some actuary will figure out how many dollars it would cost to transfer that risk.

    With all the debris and satellites orbiting the Earth someone's going to have to come up with a collision insurance rider soon. :D
     
  5. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

    45,744
    985
    Apr 17, 2003
    Michiana
    The satellite is only covered if it is hit by a ficus. :lol:
     
  6. tcusta00

    tcusta00 Active Member

    7,911
    1
    Dec 31, 2007
    Did the Chinese have any of those on the satellite they blew up last year? :lol:
     
Thread Status:
Not open for further replies.

Share This Page