At 11:00 on February 27, accompanied by a loud noise, the Long March 8 yao-2 carrier rocket carrying 22 satellites was launched at China’s Wenchang space launch site, creating China’s record of “multiple satellites with one arrow”, that is, the largest number of satellites launched at a single time.
A satellite is launched into space orbit by rocket from the factory of manufacture. In this process, it will also encounter various risks. Many people wonder whether insurance can be “Insured” or “protected”. Is there insurance for satellites with high-end technology products? What can be guaranteed? Is the premium expensive?
do you have satellite insurance
yes! And compulsory insurance
For children’s education, we can buy education fund insurance, buy “compulsory insurance” for new cars on the road, and even pet insurance for pets to see a doctor… Insurance has become a necessity in our life. But you know, the original satellite is also insured!
The so-called satellite insurance refers to insurance products that cover all kinds of risks related to satellites and satellite launch services.
According to Ping An Property Insurance, satellite insurance is mainly based on the whole life cycle of the satellite and divided according to different risk characteristics, including satellite / rocket pre launch insurance, satellite launch insurance, satellite in orbit life insurance, satellite launch third-party liability insurance, etc.
From manufacturing to on orbit operation, insurance can run through almost all stages of a satellite. For example, before satellite launch, the risks covered by satellite manufacturing insurance mainly include the risks in the process of satellite manufacturing and installation and the test risks of various parts.
In view of the risks arising from the satellite transfer, fuel filling and other processes, the satellite / rocket pre launch insurance covers the transportation risks of the carrier rocket or satellite from the factory to the launch site, the storage and transfer risks in the launch site, the testing in the technology center and launch center, the docking between the satellite and the rocket Loss of launch vehicle or satellite caused by accidents in the process of fuel filling.
In the process of satellite launch, the satellite launch insurance mainly covers the loss risk of the satellite in the rocket flight phase or in the early stage of on orbit operation. The insurance for the launch of the long-distance carrier rocket is the primary insurance for the launch of the long-distance carrier rocket.
When the satellite is in orbit operation, the satellite in orbit life insurance mainly covers the loss of satellite operation failure, failure to work normally or partial loss of working capacity due to accidents on the predetermined fixed-point orbit, or the shortening of satellite life due to accidents. The policy period of such products is one year, which is renewed year by year.
It is worth noting that the above insurance products are voluntarily insured by the satellite manufacturer or launcher. However, the third party liability insurance for satellite launch is the unified requirement of the State Administration of science, technology and industry for national defense for all current commercial launch projects. In other words, just as new cars have to buy compulsory insurance on the road, all commercial launch projects should be uniformly insured for satellite launch third-party liability insurance.
Why did the defense science, technology and Industry Administration ask so? Yang Zeyun, a teacher of the Department of finance at the school of management of Beijing Union University, analyzed and pointed out that the third-party liability insurance for satellite launch is an insurance that covers personal injury or property loss of a third party unrelated to launch activities during space launch preparation, during launch and within a certain period after launch. Debris, satellite falling or collision with other spacecraft during satellite launch belong to the scope of responsibility. Due to the particularity and high risk of space satellite launch, even if the satellite itself is successfully launched, its debris may cause personal injury or property loss to a third party.
“As liability insurance, the third party liability insurance for satellite launch is not only to comply with international conventions, but also to protect the interests of the third party who suffers losses in the process of satellite launch. At the same time, it is also an effective tool to reduce the economic losses of the launching party.” Yang Zeyun added.
is premium expensive
expensive! RMB 100 million insurance policy
To develop and launch a satellite, hundreds of millions of funds have been invested. Is it expensive to buy insurance for the satellite?
According to the analysis of Ping An Property Insurance, satellite insurance belongs to a kind of special risk, which has the “three high” characteristics of high insurance amount, high value and high risk. In determining the premium rate of satellite insurance, we should consider many technical factors affecting the technical maturity and reliability of satellites and rockets, and the pricing mechanism is relatively complex.
How much premium does it cost to launch a satellite?
The reporter of Beijing business daily inquired about the announcement of relevant projects and found that on June 9, 2021, the Chinese government procurement network issued the announcement on winning the bid of the 05 satellite space insurance procurement project of Fengyun 3 of the National Satellite Meteorological Center (hereinafter referred to as the announcement on winning the bid), which showed that the total premium of the project was 45.98 million yuan.
What is the amount of insurance corresponding to the premium of 45.98 million yuan? According to the announcement of winning the bid, the space insurance liability of FY-3 05 satellite includes: launch insurance, with a preset insurance amount of RMB 117804 million, without deductible; In orbit insurance, the preset insured amount is RMB 117804 million, without deductible; Launch third party liability insurance with a liability limit of 650 million yuan and no deductible.
According to this calculation, the space insurance premium of FY-3 05 satellite is 1.53% of the guarantee amount. Senior actuary Xu Yuchen explained that the satellite launch failure rate is high, the risk probability is high, the guarantee amount is also very high, and the high premium is self-evident.
According to media reports, insurance was also behind the successful launch of fengyun-4 B satellite in June last year, with a preset insurance amount of nearly 1.78 billion yuan and a premium of nearly 100 million yuan.
Satellite insurance coverage is so high, will insurance companies settle claims? The answer is yes!
On November 19, 2019, China Satellite Communications Co.Ltd(601698) announced that as of that date, it had not established an effective connection with the Zhongxing 18 satellite launched in August this year, and the possibility of subsequent connection with the satellite was very low. Even if the connection was re established, the satellite did not have the ability of normal communication service. The company has submitted the loss certificate to the insurer and is actively promoting the follow-up claim settlement.
On January 7, 2020, the company said that the company had received the full compensation of US $250 million paid by the insurance underwriter according to the agreement, and the company would use this compensation for cash management. The cash management is conducted in RMB, and the maximum limit does not exceed the insurance compensation amount of Zhongxing No. 18 (equivalent to about 1.8 billion yuan), and the limit can be used in a rolling manner within the validity period.
who to buy
in addition to the aerospace insurance consortium, these companies can also
Looking at the history of China’s space insurance and satellite insurance, Ping An Property Insurance said that China’s space insurance market was basically conceived only in the 1980s. In the middle, it experienced the continuous launch failure of the long march series rockets, and the international reinsurers generally did not undertake the difficulty of China’s fire and arrow risk.
According to the reporter of Beijing business daily, in order to solve the problem of over reliance on the international market for space insurance, in 1997, under the organization of the Ministry of Finance and the central bank, nine property insurance companies including Ping An Insurance (Group) Company Of China Ltd(601318) , The People’S Insurance Company (Group) Of China Limited(601319) , China Pacific Insurance (Group) Co.Ltd(601601) and China Reinsurance jointly established the China Space Insurance consortium and established a special fund for space launch insurance to support the launch of the “Long March” series of carrier rockets.
China’s satellite launch insurance business has become a policy business.
In 2004, the former CIRC approved the “urgent request for instructions on the insurance of fengyun-2c meteorological satellite launch” of Jiangtai insurance brokerage company, saying that it agreed to arrange the insurance and reinsurance business of satellite launch on the basis of the independent choice of customers (policyholders) and in accordance with the principle of commercial operation. The marketization of China’s space insurance and satellite insurance began to advance step by step.
According to the incomplete statistics of the reporter of Beijing business daily, up to now, the insurance enterprises that can underwrite satellite insurance mainly include The People’S Insurance Company (Group) Of China Limited(601319) , China Pacific Insurance (Group) Co.Ltd(601601) , Ping An Insurance (Group) Company Of China Ltd(601318) , Beibu Gulf insurance, Zheshang insurance, Guoyuan insurance, Jiangtai insurance brokerage company, etc., covering the vast majority of head insurance companies and some small and medium-sized insurance companies. Moreover, more and more insurance companies are involved in aerospace insurance.
Yang Zeyun pointed out that the progress of China’s scientific and technological strength has promoted the development of China’s aerospace industry, and the development of satellite insurance market has followed the development pace of China’s Aerospace Satellite Industry. The insurance industry has played an escort role in the development of aerospace industry.
“Despite the rapid development of China’s aerospace industry, it is still small on the whole, which is difficult to meet the law of large numbers of insurance. At the same time, for the sustainable development of satellite insurance, China’s satellite insurance will be reinsurance in the international reinsurance market after underwriting. Therefore, while transferring the risk of the launcher, satellite insurance also transfers the risk to the international market through reinsurance.” Yang Zeyun added.
