Here are some of the most common causes of satellite insurance claims:
Launch Failures
Rocket malfunctions or explosions during launch are a major cause of losses. Historically, launch failures have accounted for about 60-70% of all satellite insurance claims.
Notable examples include the 2018 SpaceX Falcon 9 failure that destroyed a $200 million satellite and the 2019 Vega launch failure that resulted in a $415 million insurance claim.
Deployment Failures
Problems during the critical deployment and testing phase once in orbit are another common cause of claims. Issues like antenna deployment failures can render the satellite a total loss.
Debris Collisions
Component Failures
Technical faults with satellite subsystems like power systems or gyroscopes can cause partial or total losses during operation.
Human Error
Mistakes during manufacturing, testing, or operation can lead to losses.
Adverse Space Conditions
The harsh temperature, radiation, or magnetic conditions in space can damage satellites over time and cause eventual failure.
Summary
Launch and deployment risks historically account for the majority of claims, but debris, technical faults, and space conditions also play a role. The changing risk landscape with large LEO constellations poses new challenges for underwriters.
