Robert P Whearty Marsh Space Projectsusa
Robert P Whearty Marsh Space Projectsusa
Robert P Whearty Marsh Space Projectsusa
First party
August 2015
Marsh Proprietary
Marsh Proprietary
7/13/2012
Septe 1
mber
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Septe 2
mber
Robert P. Whearty
Sr. Vice President
Washington DC
Marsh Proprietary
Launch Insurance
Recent Market Events
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SpaceX
ISS Launch Failure
DOL: June 28, 2015 Falcon 9 rocket failure
No launch insurance placed (first party)
Total Loss of Rocket and 4,000 pounds of NASA cargo
NASA ISS adapter ring lost
SpaceX did not insure NASA incentives ($30-50M est.)
No reports of third party liability
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Shipment to
Launch Facility
Launch Facility
Activity
Launch/
Intentional
Ignition
In-Orbit (year 2
through EOL)
Type of Insurance
Manufacturers Property
Policy
Launch (+1)
Launch & In Orbit
Liability (Third Party
Liability, TPL)
Incentives
In-Orbit
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EDC
Satellite
Complete
Arrival at
Launch Site
Nominal Launch
Intentional
Ignition
Launch
Intentional
Ignition
Launch Site
Processing
In Orbit Testing
Completion /
Handoff
Launch Spacecraft
Separation
180 Days
Launch
Launch Abort
Intentional
Ignition
Engine
Shutdown
Launch Pad
is Safe
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Septe 12
mber
60
50
30
20
10
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23
13
Septe
France - $58M
Rest of Europe - $65M
40
30
20
10
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23
14
Septe
$700
Capacity (Millions)
$600
$500
$400
$300
$200
$100
$0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Launch $274 $347 $350 $465 $593 $600 $650 $551 $519 $355 $300 $372 $403 $417 $501 $512 $546 $634 $629 $644 $725 $772 $694
In-Orbit $137 $174 $175 $232 $297 $307 $331 $332 $336 $258 $239 $245 $297 $312 $466 $492 $442 $561 $539 $520 $573 $580 $533
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Manufacturing
Transit, Incidental
Storage
Arrival and
Processing at
Satellite Processing
Facility at launch site
Intentional
Ignition
Launch or
Lift Off
Provides coverage for direct physical loss or damage to the launch vehicle or
satellite, including its related launch equipment.
Incentives (both positive and negative) and consequential loss insurance can be
included to provide cover for extra expenses, etc. arising out of the physical loss or
damage to the satellite and launch vehicle.
Market offers delay start up and consequential loss cover for any launch delay
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Launch Insurance
Intentional Launch
Ignition
S/C
Separation
In-Orbit Testing
30-90 Days
(Customer
Acceptance)
Launch
Plus 180
Days
Provides coverage for the loss of operational capability due to occurrences during the coverage
period.
Future losses (fuel and power) are covered if the loss manifests itself during the coverage period.
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$300M
$100M
A
$0
Launch
Spacecraft Separation
1 Year
Provided by Launch
Services Provider
Provided by Insurers
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In-Orbit Insurance
Expiration of
Launch Policy
Up to 1 Year
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Incentives Insurance
Intentional
Ignition, Launch,
or Successful
Separation
Up to 1 Year from
Launch or Final
Acceptance
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Insurance Rates
Launch Vehicle Factors
Launch Vehicles: Ariane 5, Proton M/Breeze M, Delta IV, Falcon 9, Sea
Launch, etc.
Heritage
- Flight record
- Integration of new equipment or operations
- Testing program
Technical presentations
- Launch vehicle development
- Previous flight failures or anomalies
- Multiple satellite dispenser experience
Access to information
- Some insurers are very technical - they require a significant amount of
information
- Crucial to maintaining market confidence and relationships
- Export control regulations - always a concern
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Insurance Rates
Satellite Factors
Satellites:
Heritage
- Satellite systems and subsystems
- Previous flight history
Level of Redundancy - Bus and
Payload
- Spare components
- Single point failures
Customer Oversight
Performance Margin
Test Program
- Qualification
- Quality Control and workmanship
screening
- Waivers
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Access to Information
- Technical presentation
- Disclosures prior to launch i.e.
Pre-ship review
- Post launch and in-orbit updates
and claims information
- Export control regulations May
need to establish TAA or DSP
licenses in order to export data to
underwriters for insurance
purposes. Marsh provides a
monthly Export License List
detailing all particulars of the space
insurance community
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Insuring Agreement
Export control
Intended commercial
communications purpose
Due diligence
Definitions
Subrogation
Material Change
Salvage
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identified as the recipient herein (you). This document contains proprietary, confidential information of Marsh and may not be shared with any third party,
including other insurance producers, without Marshs prior written consent. Any statements concerning actuarial, tax, accounting, or legal matters are based
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regard to the Marsh Analysis or to any services provided by a third party to you or Marsh. Marsh makes no representation or warranty concerning the
application of policy wordings or the financial condition or solvency of insurers or reinsurers. Marsh makes no assurances regarding the availability, cost, or
terms of insurance coverage.
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