# Presentation: 154987

## RMWG OutbriefOctober 11, 2007

**Chris Kunstadter**
**Vice President**
**XL Insurance**
**(+1) 212-321-6510**
**chris.kunstadter@xlgroup.com**

## Agenda

- The state of the space insurance industry
- RMWG Topics

## Recent Issues in Space Insurance

- Third-Party (Liability) Insurance
- Impact of Proton failure
- Chinese ASAT test
- First-Party (Physical Damage) Insurance
- Losses in 2007 exceed premium
- Delays in Sea Launch and Proton launches

## Proton Launch Failure in Kazakhstan

**Proton Launch Failure in Kazakhstan**

## Recent Debris Events in LEO

**Recent Debris Events in LEO**

**www.st-suunnittelu.fi/romu/**

**www.centerforspace.com**

***Chinese ASAT Test, 11 Jan.***

***Proton Aux Motor Explosion, 14 Feb.***

***Breeze-M Explosion, 19 Feb.***

***Estimated debris >5-10 cm from Jan & Feb 2007 breakup events:***
***FY-1C (Jan 11): >2,200 pieces***
***Beidou 2A (Feb 2): 100 pieces***
***Proton Aux Motor (Feb*** ***14): 60 pieces***
***CBERS 1 (Feb*** ***18): 24 pieces***
***Briz-M stage (Feb*** ***19): 1,000 pieces***

##  The Insurance Market Cycle

**Profitability**

**Relaxed Underwriting**

**Flight to Quality**

**Inadequate Reserves**

**Increased Capacity**

**Seek Market Share**

**Inadequate Rates**

**Mounting Losses**

**Profits Rise**

**Rates Increase**

**Capacity Decrease**

**Insolvencies/Withdrawals**

** ****The Insurance Market Cycle**

**Rates Decrease**

**Hard Market**

**Soft Market**

***You are here?***

## Insured Launches

## Market Exposure In Orbit

## Launch Vehicle Failure RatesCurrent GEO launch vehicles*

**Launch Vehicle Failure Rates*****Current GEO launch vehicles****

**** Current GEO launch vehicles included in this survey are: Ariane 5, Atlas 5, Delta 4, H-2A, Long March 3A/B/C, Proton M/Breeze M, Soyuz Fregat & Soyuz 2, Zenit 3/SL***

**Average**

## Satellite Failure RatesCommercial communications satellites1st year (i.e., “post-separation/IOT” phase)By manufacturer*, since 1997

**Satellite Failure Rates*****Commercial communications satellites******1******st****** year (i.e., “post-separation/IOT” phase)******By manufacturer*, since 1997***

**Average**

**** Major “Western” manufacturers of commercial communications satellites included in this survey are AAS, Antrix, Astrium, Boeing, LM, Loral, Orbital***

***15.8%***

## Satellite Failure RatesCommercial communications satellites2nd & subsequent years (i.e., “in-orbit” phase)By manufacturer*, since 1997

**Satellite Failure Rates*****Commercial communications satellites******2******nd****** & subsequent years (i.e., “in-orbit” phase)******By manufacturer*, since 1997***

**Average**

**** Major “Western” manufacturers of commercial communications satellites included in this survey are AAS, Antrix, Astrium, Boeing, LM, Loral, Orbital***

## Split of Claims Between Launch and In-Orbit Phases

## Annual Premiums and Losses

## Total Cumulative Return for Space Insurance Market(since 1998)

## RMWG Topics

- Commercial human spaceflight task force
- Subgroup of RMWG
- Brainstorming and developing agenda for topics to be brought to the full RMWG
- Specifically looking at human spaceflight issues
- Ongoing effort

## Topics for further study

- Requirements and availability of insurance for personal space flight
- FAA safety regulation of human space flight
- Inter-party waivers of liability
- State-based legislative initiatives
- MPL calculation methodologies
- Definition of third parties under concurrent operations
- Application of industry standards