Satellite Launch and Space Insurance Market conditions can be influenced by a wide range of factors, including economic policies, geopolitical events, and technological developments. The global Satellite Launch and Space Insurance market size was valued at USD 634.29 Million in 2022 and will reach USD 799.29 Million in 2028, with a CAGR of 3.93% during 2022-2028.
Satellite launch and space insurance refer to the general term of insurance for satellites and various risks related to satellite launch services. A satellite will encounter various risks during the process of launching from the factory through the launch tool to launching into the space orbit. Therefore, a variety of insurance forms are needed to protect. Satellite risks can be divided into normal risks and abnormal risks. The satellite launches and space insurance market is a global market. Satellite owners, satellite manufacturers, launch service providers, insurance brokers, underwriters, financial institutions, reinsurance companies, and government agents around the world are all cooperating to coordinate satellite launches for any given insurance plan.
At the beginning of 2020, the COVID-19 disease began to spread globally, and major countries in the world have implemented foot bans and work suspension orders. As of October 2021, more than 230 million people worldwide have been infected with the COVID-19 disease. Except for the medical supplies and life support product industries, most industries have been greatly affected, and the satellite launch and space insurance industries have also been greatly affected, which is largely affected by the downstream aerospace industry.
On the one hand, certain structural weaknesses in the aerospace industry make it particularly vulnerable to economic shocks. The severe short-term negative impact brought about by the epidemic is mainly concentrated on smaller suppliers. The difficulty of capital turnover has forced many projects to be delayed or suspended and even made business operations difficult.
On the other hand, a considerable number of companies are still struggling due to manufacturing delays, which are mainly due to restrictions on raw materials and on-site labor. For some aerospace manufacturers, due to social distancing measures and supply chain delays, the crisis has slowed down product delivery and mission deployment and has had a certain impact on revenue.
As a result, the COVID-19 pandemic has caused delays in satellite launch and manufacturing, leading to some delays in insurance companies premium income. Although the epidemic has not had any observable negative impact on the underwriting terms and conditions provided by insurance companies, the overall business interruption claims due to COVID-19 are high and many insurance categories will be affected, including satellite launches and space insurance.
North America had the highest growth rate of all regions. Munich Re is one of the major players operating in the Satellite Launch and Space Insurance market, holding a share of 6.45% in 2021. Munich Re is one of the world’s leading providers of reinsurance, primary insurance and insurance-related risk solutions.