Aon Launches Insurance Policy for Space Investors
Aon’s International Space Brokers has launched Investment Protection Insurance (IPI) for space investors.Aon says IPI is the first policy strictly for investors, and is designed to cover the loss of an investment in a space satellite, launch failure and satellite assets.
Previously, investors could not protect their financial interest due to lack of insurance capacity and first-party rights to the spacecraft. For start-up companies, which rely on the revenue generated by the early launches, the ability for the satellite to be successful is crucial. IPI enhances the satellite operator’s initial credit rating by relieving investors of the biggest risk – failure to launch.
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.
Source: Aon