What are the Most Common Causes of Satellite Insurance Claims?

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.

The recent ViaSat-3 and Inmarsat-6 satellites may result in large claims due to suspected antenna deployment failures.

Debris Collisions

Collisions with space debris have caused a number of losses, though the overall probability remains low.

The 2009 collision between an Iridium satellite and a defunct Russian satellite resulted in a $50 million insurance claim.

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.