Development in space projects and the insurance market: new frontiers in risk management

The liability relationship amongst operators of space vehicles, users contractors and subcontractors is complex. In addition, legal precedents and agreements create uncertainty that may result in unexpected but large exposure to losses. We are speaking about making valuations of the intrinsic economic risks of space market, not in terms of the value of aerospace assets, but rather of their use, that is of their capacity to generate sufficient cash flows to remunerate the subjects involved in the various phases of putting satellites into orbit. This article provides a broad description of the risks and liability aspects related to the space world. Some of the commercial risks of spacecraft operations are contractually allocated between the parties involved. Spacecraft and payloads are expensive and they too are at risk at various phases of a mission. Failure of a single component may result in the complete loss of a mission at enormous cost