Aon’s International Space Brokers announced on May 5 the launch of a new product called Investment Protection Insurance. IPI is the first policy strictly for investors, and is designed to cover the loss of investment in space satellite, launch failure…
Aon’s International Space Brokers announced on May 5 the launch of a new product called Investment Protection Insurance. IPI is the first policy strictly for investors, and is designed to cover the loss of investment in space satellite, launch failure and satellite assets.
Aon states that, previously, investors could not protect their financial interest as they had no first-party rights to the spacecraft. Under the IPI, a claim will be triggered by any damage to or total loss of the satellite. The policy will react to fluctuations in bond yields and the share price before and after the launch or orbit, and then pays the amount lost on the publicly or privately traded securities of the satellite operating company. In the event of a loss paid, the insurers will receive the securities as salvage.
Clive Smith, space business unit leader for ISB, commented: “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.”
