A consortium of Lloyd’s syndicates have entered the space race with a new cover for the firms seeking to access the opportunities for spaceflight.
The product is designed to cater to the distinct needs of a rapidly growing new space sector, which, according to Lloyd’s, could be the driving force behind a tripling in size of the global space market by 2040.
The solution, Llift Space, is only available in the Lloyd’s market and allows customers to cover their assets from the pre-launch phase, including transit and placement on the launch vehicle, through to the launch phase and in-orbit operation. It is designed for satellites that weigh less than 300kg.
The policy is modular so customers can choose the elements within each phase that are most relevant to their coverage needs.
The product is backed by a consortium of 18 syndicates, led by Brit and Hiscox MGA, with a $25m capacity per risk, and is targeted at the NewSpace sector.
NewSpace is characterised by lower cost, easier routes to space, opening up the sector to private enterprise, wealthy entrepreneurs and innovative start-ups. This is increasing the need for space insurance.
According to a new Lloyd’s report, NewSpace: bringing the new frontier closer to home, also published today, the global space market could increase in value from $300 billion today to $1 trillion by 2040, driven by NewSpace companies entering the sector.
Trevor Maynard, Lloyd’s Head of Innovation, (pic below) said: “New aerospace companies and ventures are emerging all the time. They are looking to develop faster and cheaper access to space and spaceflight. As they do so, they want access to easily scalable insurance that fits their needs and can be arranged quickly to support technological development and business growth. Our new space consortium allows Lloyd’s to do this better than ever. The breadth and depth of space insurance knowledge among Lloyd’s underwriters and brokers means that Lloyd’s is the number one choice for both traditional and NewSpace insurance.”
Gary Brice, Head of Marine and Space for Lloyd’s managing agent Brit Global Specialty, which manages Llift Space with Hiscox, said: “Llift Space takes away the complexity of traditional space insurance and allows customers, in particular those in the NewSpace sector, to insure all the phases of their project with one policy.”
Pascal Lecointe, Head of Space for Hiscox, said: “Having two leading markets in the sector come together in a way that’s never been done before to create a genuinely innovative Lloyd’s product for this dynamic new industry, highlights the place Lloyd’s retains at the forefront of the global space insurance market.”