As SatelliteFinance exclusively reported last month, US insurance giant American International Group (AIG) has introduced a launch-plus-ten-years solution.
The product will be sold through its London office and Sciemus Space Limited has been appointed…
As SatelliteFinance exclusively reported last month, US insurance giant American International Group (AIG) has introduced a launch-plus-ten-years solution.
The product will be sold through its London office and Sciemus Space Limited has been appointed as a consultant. SatelliteFinance understands that Sciemus recently stopped writing launch-plus-one placements and focuses purely on in-orbit coverage.
Commenting on the new offering, Joe Trotti, global president and CEO of AIG Aerospace & Marine, said: “This new offering allows clients, for the first time, to align their insurance needs with their long term operational requirements. In what is a complex, high-value asset business, this protection gives clients greater certainty to budget for their long term costs – knowing that the policy covers their asset over a significant portion of its expected design life”.
“Typically, most assets are insured for the launch risk plus 12 months and the policy is renewable each year. As the asset ages, and failure rates and losses emerge, the cost and coverage for clients can vary – adding a level of unpredictability to the operators’ business model. Our new product offers operators, owners and financiers greater risk transfer certainty over a longer period.”
While the typical coverage is for the launch plus the first year, insurers have offered longer policies. There are several companies that have offered a launch-plus-two-years coverage product while Swiss Re has a launch-plus-five years offering.
* SatelliteFinance understands that following his resignation from Global Aerospace in July, Tim Wright is in the process of setting up a new aerospace managing general agent (MGA) backed by Lloyd’s underwriter Barbican Insurance. Wright is believed to be working with his former Global Aerospace colleague David Godley, who focused on aviation, and former JLT Aerospace underwriter Richard Power.
One source suggested that the new syndicate will begin writing business from the start of 2014 and there are even rumours that some Chinese capacity may be involved.
