The NewSpace sector will be worth an estimated $1 trillion by 2040
Lloyd’s has today launched a new multi-million-pound space insurance policy for the emerging private spaceflight industry.
The product, called Llift Space, has been designed to cater to the needs of the rapidly growing space sector; Lloyd’s believes this new arena could triple the size of the global space market by 2040.
It is backed by a consortium of 18 syndicates, led by Brit and Hiscox MGA with a $25m capacity per risk - this allows Lloyd’s to fit the needs of policyholders and arrange cover quickly.
Llift Space allows customers to cover their assets from pre-launch phase, including transit and placement on the launch vehicle, through to the launch phase and in-orbit operations. This cover is only available on the Lloyd’s market and is designed for satellites that weigh under 300kg.
The modular policy is targeted at the NewSpace sector; customers can select elements within each phase that are the most relevant to their coverage requirements.
According to a new Lloyd’s report, NewSpace: bringing the new frontier closer to home, which was also published today, the global space market could increase in value from $300bn in 2019 to $1trillion by 2040.
NewSpace is a sector characterised by lower cost and easier routes to space. It opens up the sector to private enterprises, wealthy entrepreneurs and innovative startups. In turn, this increases demand for space insurance.
Gary Brice, head of marine and space for Lloyd’s managing agent Brit Global Specialty, which manages Llift Space with Hiscox, explained:“Llift Space takes away the complexity of traditional space insurance and allows customers, in particular those in the NewSpace sector, to insure all the phases of their project with one policy.”
Cheaper and faster
Trevor Maynard, Lloyd’s head of innovation, said: “New aerospace companies and ventures are emerging all the time. They are looking to develop faster and cheaper access to space and spaceflight. As they do so, they want access to easily scalable insurance that fits their needs and can be arranged quickly to support technological development and business growth.
“The breadth and depth of space insurance knowledge among Lloyd’s underwriters and brokers means that Lloyd’s is the number one choice for both traditional and NewSpace insurance.”
Pascal Lecointe, head of space for Hiscox, added that ”having two leading markets in the sector come together in a way that’s never been done before, to create a genuinely innovative Lloyd’s product for this dynamic new industry, highlights the place Lloyd’s retains at the forefront of the global space insurance market.”