Aon's International Space Brokers has launched Investment Protection Insurance, which is designed to cover the loss of an investment in a space satellite, launch failure and satellite assets.
The company said that the new offering enhances the satellite operator’s initial credit rating by relieving investors of the biggest risk failure to launch.
According to Aon, a claim will be triggered by any damage to or total loss of the satellite. The policy will react to fluctuations in bond yield and the share price before and after the launch or orbit. It pays an amount that recoups the loss of the publicly or privately traded securities of the satellite operating company in which the insured has invested. In the event of a loss paid, the insurers will receive the securities as salvage.
Clive Smith, space business unit leader for Aon’s International Space Brokers, said: Aon used its leverage with the insurance markets to introduce new capital, supporting both investors and operators by protecting their investments.
“As developments continue to increase for areas such as delivering broadband as well as pollution and disaster monitoring, lack of liquidity in the financial markets has delayed industry growth. IPI will restore that growth.