space travel insurance

Will space travel insurance become as common as auto insurance?

The successful July 2021 suborbital and space flights of Virgin Galactic’s Richard Branson and Blue Origin’s Jeff Bezos have renewed interest in the potential and future of space tourism and travel following SpaceX’s own recent accomplishments by founder Elon Musk. While commercial space flights are currently reserved for the wealthy, with Virgin Galactic asking $250,000 per seat, there is a reported waiting list of approximately 600 people. 1 If the price of a ticket can reach a more reasonable level for the average consumer, then demand could soar. This would expose a new area of risk that the insurance industry has never had to seriously contemplate before. Is it possible that space travel insurance will evolve similarly to auto insurance and even one day be just as common if space travel becomes mainstream? Let’s further explore the future of space travel insurance.

What is insurable?

While some may initially say that space travel insurance could never be offered as it is too risky, one must step back to the beginnings of insurance. Many underwriters in the late 1600s got their start underwriting business ventures by insuring ships that were crossing the oceans in response to the demand for increased trade. One could even argue that it might have been more treacherous to embark on multiweek ocean voyages, while being exposed to weather conditions, sickness, and navigational errors, than to undertake an 11-minute space flight. 2

There are key components to determine if a risk is insurable. They often include characteristics such as:

• There must be a large number of homogeneous exposure units
• The loss must be fortuitous, meaning accidental and unintentional
• The loss must be definite, determinable, and measurable
• The loss should not be systemic in nature such that many risks are exposed to the same event resulting in potentially catastrophic loss
• The chance of loss must be calculable
• The premium must be economically feasible

Insurance carriers cover pure risk, which includes any uncertain situation where the opportunity for loss is present and the opportunity for financial gain is absent. Hence, an insurable risk must have the prospect of accidental loss, meaning that the loss must be the result of an unintended action and must be unexpected in its exact timing and impact.

What is the current space insurance market?

The idea of insuring exposures in space is not new to the insurance industry. Some carriers such as Allianz, AXA XL, and Munich Re have been insuring space equipment such as rockets and satellites for a while now and have a pretty solid understanding of underwriting such risks. This includes prelaunch insurance, launch insurance, and in-orbit insurance and covers loss of income as well as material damage. In addition, liability insurance is also often required in the event of causing damage to other property in space or on earth. The traditional space insurance market (excluding human cargo) has had average premium volumes around $500 million over the past decade 3 but this could increase due to hardening market conditions and increased frequency of launches. NASA does not purchase liability insurance as it funded by the U.S. government and backed by taxpayers.

Richard Branson and Jeff Bezos, despite being two of the richest people in the world, did not have insurers jumping at the opportunity to cover their space travel endeavors. XINSURANCE did offer coverage to Jeff Bezos and the passengers of Blue Origin immediately before the launch but it is unknown whether Jeff Bezos took it. Virgin Galactic and Blue Origin are not legally required to offer insurance to their passengers. Virgin Galactic has even said that its passengers will eventually be required to sign a contract agreeing to be fully liable for their own safety. However, this may be hard to fully enforce, as some laws make it difficult to transfer all liability in the case of personal injury or loss of life.

In addition, space travel coverage via a life insurance policy isn’t necessarily clear. Historically, life insurance policies have excluded coverage or have charged a higher premium for risky hobbies such as personal aviation, skydiving, and hang-gliding. Life insurance companies may not have contemplated space travel to the public because it has not been typically available. Commercial aviation is not excluded in life insurance but that does not mean that commercial space travel will be covered. It would take changes to contract language to have this exclusion in the future but as with any contract, it is best practice to read all fine print. NASA astronauts are eligible for government life insurance programs while the life insurance market currently provides individual cover of $2 million to $5 million for private astronauts. 4

What is the potential future for space travel insurance?

In aviation, liability coverage is required on international flights. 4 As of now, Virgin Galactic’s and Blue Origin’s crafts launch and land in the same place. Hence, they are technically considered domestic travel despite heading into sub-orbit and space. Virgin Galactic believes it might be able to offer flights in the future that will depart in one country and land in another, via suborbital or space flight paths. Travelers, who used to take a long flight from New York to Tokyo via traditional commercial aviation, might be able to complete the same trip in a shorter time by making use of suborbital paths and by traveling at hypersonic speeds through the vacuum of space. A heavily commercialized environment like this would most likely demand liability coverage for passengers similar to current aviation regulations.

Space travel insurance might mirror the history of aviation insurance. The first air travel policy was written in 1911 but it wasn’t long before pioneers such as Charles Lindbergh were completing a transatlantic flight that was insured for $18,000. 4 Perhaps insurers will initially incorporate iron-clad waivers where they will bear no burden if someone dies but then gradually relax restrictions as more data is gathered regarding the risks, safety is proven, and frequency of flights increases. Over time, the aviation insurance industry has become a multibillion-dollar insurance market. 5 The space travel industry, once it becomes large enough, could be assimilated into general commercial aviation as the risks might be very similar and any future regulation might be similar too. The policies and coverage might even be identical with the only difference being the type of vehicle used.

Space travel is expected to have large growth from now to 2030, with some estimating space travel becoming up to a $10 billion to $15 billion industry annually, 6 and the broader global space economy is expected to triple over the next two decades, growing to $1 trillion. 7 With demand, regulation will likely increase, which will likely result in an increased need for insurance. In the event that insurers are not willing to write the risk but the public demands it, space companies may consider alternative insurance markets. Specialty writers may have an interest in the risk but captives and risk pools may be feasible too, especially if structured to take on risk the insurance markets won’t cover. Perhaps initial insurance policies will have high deductibles, exclusions, or smaller limits to keep insurance premiums reasonable and yet provide some coverage. Private equity investors are increasingly taking stake in insurance products. As the profitability of these coverages increases, it may attract more capital and risk takers.

Will space insurance accelerate like auto insurance or be grounded?

Space travel companies might be able to increase demand for future flights by offering this insurance themselves. Celebrity Ashton Kutcher is known to have had a ticket for an early space flight but decided to postpone the trip and even sell his ticket after his wife, Mila Kunis, convinced him not to go into space. These same reservations and concerns about space travel are not uncommon. It is possible that, by offering space travel insurance, companies could alleviate some of these concerns and hence sell more flights. Is there a magic premium price point at which people would be willing to assume the risk of early commercial space flights and maybe even limited coverage amounts? Perhaps, if this coverage could be embedded and offered as an add-on when the space flight itself is purchased. It wasn’t long ago pre-travel life insurance could be purchased when taking a commercial airline flight and passengers could accept or decline the product. 8 Insurers like Allianz began to develop commercial space tourism policies back in 2012 but it is unknown whether anyone bought any. 3 As space travel changes from high net worth individuals to the regular public, insurers may be more willing to write policies. There is inherent risk in traveling into space, even ignoring all the space junk that is reported to be orbiting around, but technology will evolve over time and safety will always be a priority when the public is involved and space travel is commercialized. Space travel insurance may be mandated through regulations and hence purchased by companies or simply desired by travelers with a range of net worths and purchased by passengers directly.

As space flights become more routine, the insurance industry will gather data needed to complete reasonable underwriting and pricing. Space travel will evolve and may meet the characteristics of an insurable risk. Auto insurance was once new and innovative when the automobile was first introduced and became more affordable over time and even legally required as the automobile became commonplace. Scientists and technologists believe that commuting into space is well within the future and may become widespread. Even further in the future, there has been long-time talk about building colonies in space. If this does happen, there would need to be transportation between Earth and these colonies. If cars in the future do fly, is it possible that they could reach space too? Or will rockets and spaceships simply replace cars? The insurance industry would be sure to cover any changes in mainstream transportation, especially if there is a need and there is potential profit to be earned.

This all raises the question of whether space travel insurance can evolve and become as common as auto insurance.

1 The New York Times (July 11, 2021). What will it cost to fly Virgin Galactic to space? Retrieved July 21, 2021, from https://www.nytimes.com/2021/07/11/science/cost-to-fly-virgin-galactic-space.html (subscription required).

2 Business Wire (June 29, 2021). ADDING MULTIMEDIA XINSURANCE Offers Space Insurance to Jeff Bezos and Blue Origin Passengers. Retrieved July 21, 2021, from https://www.businesswire.com/news/home/20210629005911/en/ADDING-MULTIMEDIA-XINSURANCE-Offers-Space-Insurance-to-Jeff-Bezos-and-Blue-Origin-Passengers.

3 The New York Times (July 9, 2021). Spaceflights for Richard Branson and Jeff Bezos spur a race for insurers, too. Retrieved July 21, 2021, from https://www.nytimes.com/2021/07/09/business/richard-branson-jeff-bezos-spaceflight-insurance.html (subscription required).

4 Reuters (June 24, 2021). Bezos' 2021 Space Odyssey a risk too far for insurers. Retrieved July 21, 2021, from https://www.reuters.com/technology/bezos-2021-space-odyssey-risk-too-far-insurers-2021-06-24/.

5 Willis Towers Watson (April 21, 2021). Insurance Marketplace Realities 2021 Spring Update – Aerospace. Retrieved July 21, 2021, from https://www.willistowerswatson.com/en-US/Insights/2021/04/insurance-marketplace-realities-2021-spring-update-aerospace

6 Barron's (July 19, 2021). Travelers’ Insurance for Space Travel Could Be on the Way. Retrieved July 21, 2021, from https://www.barrons.com/articles/space-tourism-insurance-blue-origin-virgin-galactic-51626553505.

7 CNN Business (September 15, 2018). Why on Earth would a company offer insurance for space travel? Retrieved July 21, 2021, from https://money.cnn.com/2018/09/15/technology/business/space-insurance-industry/index.html.

8 Insurance Business (May 27, 2015). A look back: Whatever happened to airport insurance vending machines? Retrieved July 21, 2021, from https://www.insurancebusinessmag.com/us/news/breaking-news/a-look-back-whatever-happened-to-airport-insurance-vending-machines-22593.aspx

Explore more tags from this article

About the author(s), richard frese.

Chicago Tel: 1 312 499 5648

We’re here to help

Ask the tough questions. We’re ready for them.

Share this page

As Jeff Bezos, Richard Branson and passengers make it to space, a new area of risk arises for the insurance industry.

The Insurance Implications of Space Tourism: Navigating New Risks and Policies

• February 29th, 2024
• No Comments

Table Of Contents

The Insurance Implications of Space Tourism: Space tourism is rapidly transitioning from a sci-fi fantasy to a tangible reality, with private companies aiming to take civilians beyond the Earth’s atmosphere. This nascent industry brings with it a unique set of challenges and considerations, particularly in the realm of insurance. As individuals prepare to journey into space, insurers are grappling with the implications of covering such unprecedented risks. Liability, coverage options, and pricing are just a few of the complex elements that come into play when insuring space tourists.

The insurance industry is finding itself at a pivotal point as it extends its services into the space tourism sector. Insurers must craft policies that contend with the multifaceted risks associated with space travel, which range from launch accidents to in-orbit emergencies. This step into the unknown requires an understanding of the legal and regulatory environment specific to space , as well as the potential for insurance claims and litigation. The crafting of these insurance products will play a critical role in the sustainability and growth of space tourism by offering financial protection against the inherent risks of Space Voyages.

Key Takeaways

• Insurance for space tourism is evolving to meet the unique challenges of this emerging industry.
• Insurers are creating novel policies that address the extensive risks and liabilities of space travel.
• The development of these insurance products is essential for the future growth and viability of space tourism.

Evolution of Space Tourism

The progression of space tourism has transitioned from the era of early pioneers to the current landscape of competitive private companies, marking significant technological milestones that have broadened the boundaries of civilian space travel.

Early Pioneers to Current Operators

Space tourism was once a dream limited to science fiction, with its beginnings rooted in the endeavors of government agencies like NASA . It was not until 2001 when Dennis Tito , an American engineer and entrepreneur, became the first private tourist to fund his own trip into space . His historic voyage aboard a Russian Soyuz spacecraft marked the advent of consumer space travel.

In the decades that followed, private companies have taken the helm of space tourism. Virgin Galactic , founded by Sir Richard Branson, positioned itself as a trailblazer by focusing on suborbital flights for the public. The new breed of space tourism operators also includes Blue Origin and SpaceX , both actively working to lower the barriers of entry to space with reusable rocket technology . These companies signal a shift from government to privately-funded human spaceflight , creating a burgeoning industry of space tourism.

Technological Milestones

The path to today’s space tourism landscape is paved with numerous technological milestones. The success of SpaceX ‘s Dragon spacecraft and Falcon Heavy rocket has shown that private ventures can now match and even surpass the capabilities once exclusive to national agencies. Similarly, Blue Origin’s New Shepard system has demonstrated the potential for safe and reusable suborbital travel.

Virgin Galactic has also etched its name in history with the development of SpaceShipTwo, designed for commercial use. These technological advancements have opened the doors to what was once the preserve of astronauts, now accessible to civilians, albeit those with substantial financial means. The growth of space tourism is marked not only by these advanced vehicles but also by the infrastructure supporting them, including specialized spaceports and training programs for prospective space tourists .

Insurance Products for Space Travel

In the emerging market of space tourism, insurance products are critical for managing the financial risks associated with this novel form of travel. They provide a safety net for both operators and tourists venturing into the final frontier .

Coverage Types and Options

Liability Insurance: Many space travel policies offer liability coverage to protect the space tour operators from claims resulting from injuries or property damage. They manage risk by setting clear limits to the coverage provided, which may vary based on the insured’s specific needs.

Risk Management: As space tourism is inherently risky, risk management strategies are integral to the design of insurance products. Insurers may require stringent safety measures from operators to decrease risk factors before issuing a policy.

Personal Accident Coverage: This covers the tourists themselves in the event of injury or death. Varying levels of coverage are available, and premiums will likely reflect the inherent risks of space travel .

Hull Insurance: Similar to aviation, hull insurance covers damage to the spacecraft itself. This is critical, given the high value and complexity of space vehicles .

Insurers are adapting traditional models to the needs of space tourism, with innovative products reflecting the risk profile of space travel. Premiums are calculated based on a variety of factors, including the frequency of flights, safety records, and technological advancements .

The definitive success of insurance for space tourism hinges not only on developing comprehensive products but also on ensuring that these offerings are accessible and adequately explained to prospective space tourists.

Legal and Regulatory Environment

Understanding the complexities of the legal and regulatory environment is crucial for the space tourism industry . This section delves into the intricacies of domestic and international laws , as well as the authorization and oversight bodies that govern space travel.

Domestic and International Laws

Space tourism operates within a framework where domestic law intersects with international obligations . Nation-states are primarily responsible for regulating their own aerospace activities, but they must do so in accordance with international treaties like the Outer Space Treaty and the Liability Convention . These treaties establish a foundation for states to authorize and continually supervise the activities of non-governmental entities in outer space , including space tourism companies.

• Outer Space Treaty : It forms the basis of international space law, ensuring that the exploration and use of outer space are carried out for the benefit of all countries, regardless of their degree of economic or scientific development.
• Liability Convention : It addresses the liability issues arising from space activities , imposing absolute liability on the launching state for damages caused by their space objects on the surface of the earth or to aircraft in flight.

The legal issues surrounding space tourism are complex and continually evolving. For instance, there’s ongoing discussion about the need for a comprehensive legal framework and the application of a norm of customary international law to ensure both the safety and the responsibility of space tourists and operators.

Authorization and Oversight Bodies

In the United States, the Federal Aviation Administration (FAA) is the key body overseeing space tourism. It grants licenses for commercial space launch activities, ensuring compliance with national laws and international obligations.

• FAA Regulations : The FAA’s Office of Commercial Space Transportation is tasked with protecting public health and safety, ensuring safety of property, and maintaining national security and foreign policy interests during commercial launch or reentry activities.
• International Coordination : While the FAA regulates the American private spaceflight companies, coordination with international law and other countries’ regulatory bodies is vital, especially considering shared airspace and the multinational nature of many space tourism ventures.

Entities involved in space tourism must navigate a complex environment of regulations and legal frameworks, working with bodies like the FAA. These efforts are aimed at ensuring the safety , liability, and forward momentum of the rapidly emerging space tourism sector.

Risks and Liabilities in Space Tourism

Space tourism brings unique challenges, particularly concerning the safety of passengers and the financial responsibilities of those providing the services. In this emerging field, the potential hazards and liabilities for operators and manufacturers are critical considerations.

Potential Hazards

Space tourism ventures face significant risks due to the harsh environment of space and the complexity of spaceflight. This includes the potential for bodily injury to space tourists and astronauts alike, should the sophisticated life support and propulsion systems fail. Other environmental dangers are:

• Exposure to high levels of radiation outside the Earth’s atmosphere
• Micro-meteoroids posing a risk to both spacecraft integrity and occupants

Liability for Operators and Manufacturers

Liability for space tourism operators and manufacturers revolves around the legal responsibility for any injury or damage that might occur during spaceflight. Operators have to consider:

• Informed consent from space tourists acknowledging the risks
• Insurance coverage for bodily injuries or fatalities
• Potential damage to third-party property on the ground or in airspace

Manufacturers of spacecraft also have legal responsibilities. They must ensure their crafts meet rigorous safety standards to avoid fault in case of an accident, which could lead to significant financial repercussions.

Pricing and Cost Considerations

With the advent of space tourism, pricing and cost considerations have become crucial for both consumers and insurers. Understanding these factors can help in assessing the financial viability and potential growth of the nascent space tourism industry.

Factors Influencing Insurance Costs

Market Entry and Experience: Insurers assess premiums based on the maturity of the space tourism market. New entrants may face higher premiums due to limited operational experience, while established companies with proven safety records may benefit from lower costs.

Risk Profile: Space tourism involves unique risks related to the safety of passengers and the spacecraft. The Columbia Accident Investigation Board highlighted the inherent dangers of human spaceflight, which directly influence insurance premiums.

Vehicle Design and Reliability: Insurers consider the design and track record of spaceflight vehicles. A history of successful missions can lead to more favorable insurance terms, whereas unproven or complex designs may result in higher costs.

Regulatory Environment: The level of federal oversight, as per the Commercial Space Launch Amendments Act of 2004 , can affect insurance costs. Stricter regulations might increase operational expenses, impacting premiums.

Revenue and Profitability for Insurers

Insurance Premiums: Premiums are a primary source of revenue for insurers. They must be carefully set to cover potential claims while attracting customers in a competitive market.

Claims vs. Premiums: The profitability of space tourism insurance relies on the balance between claims paid out and the premiums collected. A low frequency of claims can lead to significant profitability, but high-profile accidents may lead to substantial payouts.

Ancillary Products: Insurers can increase revenue by offering additional products, such as coverage for training injuries or trip cancellations. Diversifying offerings can help mitigate risks and enhance the overall profitability of their space tourism portfolio.

By scrutinizing the factors that influence insurance costs and the revenue possibilities for insurers, stakeholders can navigate the complexities of the space tourism insurance market. The balance between risk management and cost competitiveness will be a defining factor in the growth of this industry.

Insurance Claims and Litigation

Navigating the complexities of insurance claims and litigation in space tourism is a pivotal aspect of the industry’s legal framework. As space travel inches closer to a mainstream reality, insurers and legal experts are establishing protocols to manage both claims and potential disputes.

Handling Claims

Types of Claims: Insurance claims in space tourism can range from property damage to personal injury. Given the unique risks associated with space travel, insurers must assess various scenarios, including spacecraft malfunctions and on-orbit accidents.

Processing Claims: Insurers will likely require detailed documentation and possibly an investigation into the cause of any incident. Prompt and accurate claim filing will be essential for tourists to ensure timely resolution.

Litigation Cases and Precedents

Legal Precedents: As space tourism is a relatively new industry, there are few legal precedents directly related to it. Nevertheless, emerging litigation provides guidance on how courts may handle disputes involving space tourists and service providers.

Litigation Challenges: Potential legal issues in space tourism litigation include jurisdictional questions and the application of international space law. Both claimants and defendants must prepare for these complexities and the need for specialized legal expertise.

Future of Space Tourism Insurance

The insurance landscape for space tourism is poised to undergo significant changes as the industry advances towards regular commercial flights, potentially even beyond the moon.

Emerging Trends and Predictions

The year 2040 is envisioned as a milestone for the space industry with forecasts suggesting space tourism will be a more common endeavor. Insurance providers are anticipating the shift and are likely to introduce specialized policies that address the unique risks associated with space travel. These trends indicate a growing need to insure not just the spacecraft but also the wellbeing of passengers experiencing weightlessness and other aspects of outer space travel.

With private companies aiming to facilitate trips to the International Space Station (ISS) and even the moon , insurers are expected to develop products that mitigate the risks of these ambitious journeys.

Innovation in Policy Design

The insurance industry faces the challenge of creating policies that are comprehensive yet affordable for space tourism participants. Innovative policy designs will need to consider factors like the health impacts of weightlessness , the safety of transit to destinations like the ISS , and potential emergency scenarios in outer space . To safeguard the benefits of space tourism—both for travelers and the companies facilitating these experiences—insurers might adopt dynamic pricing models, incorporate passenger health data , and partner with space travel companies to ensure adequate training and safety measures are reflected in policy terms.

The Insurance Implications of Space Tourism: Frequently Asked Questions

The advent of commercial spaceflights has given rise to unique insurance implications and frequent queries regarding policies and risk assessments. This section aims to clarify common questions associated with space tourism insurance.

How are insurance policies structured for commercial spaceflights?

Insurance for commercial spaceflights is tailored to address the high-risk nature of space travel, covering aspects distinct from conventional aviation policies. Insurers consider several variables including vehicle reliability, mission profiles, and the spaceflight company’s track record.

Can space tourists obtain coverage similar to traditional travel insurance policies?

Coverage for space tourists is more complex than traditional travel insurance. Policies have been developed to manage the unique risks of space travel, often requiring custom underwriting and premiums that reflect the high-risk environment.

What are the primary risks covered by space tourism insurance?

Space tourism insurance typically involves coverage for physical damage to spacecraft , also known as hull risks, and liability for potential injury or damage to third parties.

How do insurance providers assess the risks associated with space tourism?

Insurance providers assess risks by examining vehicle designs, safety records, and operational procedures. They also consider insights from experts regarding lack of a statistical analysis track record due to the industry’s nascency.

What is the role of government regulations in space tourism insurance?

Government regulations play a significant role by setting standards for safety and liability. These regulations can influence insurance requirements and underwriting processes for space tourism companies.

How might the growth of the space tourism industry impact the insurance market?

The expansion of space tourism is prompting insurers to innovate new products and adjust to a market characterized by unfamiliar risks and potential growth in demand for specialized coverage.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Space Souvenirs: Collecting Cosmic Keepsakes from the Final Frontier

Virtual space exploration: a prelude to physical travel – charting new worlds from home, the psychological effects of space travel on tourists: insights into the astronaut experience, the evolution of space tourism: how cosmic travel became attainable, the role of private companies in advancing space exploration initiatives, spaceports around the world: unveiling global launch sites.

The Current "Universe" Of Space Insurance

Contributor.

Space insurance has actually existed since 1965, but it has undergone incredible growth in recent decades 1 thanks in part to commercialization/privatization of efforts to launch satellites and other space objects. In 2021, the number of active satellites jumped over 200% from five years prior. 2 One of the most-pressing concerns a private company or a governmental agency may have in the process is navigating the "space junk" or "space debris" in orbit around the Earth, estimated at over 170 million pieces.3 So far, there has only been 11 instances of partial or total failure related to space debris, but insurers are becoming increasingly concerned about such collisions—this is known as the "Kessler Effect." 4

In the 1970s, NASA's Don Kessler anticipated that the low earth orbit ("LEO") would become so crowded that there would be a "cascade of collisions." 5 As a result of this concern, collision coverage may be increasingly hard to offer for insurers. 6 Even with the Federal Communications Commission's recent rules ordering companies to take down nonfunctioning satellites within five years, 7 it is unclear how to effectively reduce the amount of space debris overall.

Passenger space travel presents another unique concern with which insurers will have to grapple. There are surprisingly few national laws requiring space law insurance coverage for passenger space travel specifically. However, more nations may begin to legislate on space matters, and as a result, insurers will have to navigate their risk tolerance in relation to those laws.

This article discusses the current "universe" of space insurance for all of those would-be explorers to space and beyond!

I. SPACE INSURANCE POLICIES

There are four primary types of insurance policies offered on the market, all of which operate separately and cover different risks. Some insurance companies offer combined policies, but most insurance policies operate independently. 8 Insurance packages typically cover "risk to the rocket, the satellite, and related equipment. 9 Normally, insured entities will obtain policies from a few different parties to better protect themselves in the event that an insurer is unable to pay, what may be an extremely large claim. 10

A. Pre-launch insurance:

Pre-launch insurance covers material damage associated with activities prior to launch and can be obtained for both the satellite itself and the launch vehicles, including the rocket. 11 Typically, it covers transportation of the satellite from the manufacturing location to the launch location, the "launch configuration; integration into the launch vehicle; and all launch preparations." 12 It generally includes fueling and encapsulation, as well. 13 This coverage usually ends when satellite ownership by manufacturer terminates and passes to the purchaser. 14 It can, however, be extended up until the point where a "launch can no longer be aborted—often a few seconds after ignition. In such cases, pre-launch insurance covers—if only for a very short time—the risk that the launch vehicle will fail to operate." 15 There is also an option for "post-abort coverage" where, if the coverage ended earlier, it could reattach if the launch is aborted. 16

B. Launch insurance:

Launch coverage typically runs from the start of the launch phase until one year after launch and "provides all-risks coverage for material damage and malfunctions occurring" during that time frame. 17 All risk coverage is a type of insurance policy that includes any and all risks that the insurance policy does not specifically exclude, so it provides more broad coverage typically.

There may also be available a combination policy of launch insurance and in-orbit insurance that may apply for all phases of a satellite life. 18

C. In-Orbit Insurance:

In-orbit coverage provides an insured with protection in case of failure while the satellite is in operation . 19 This coverage is "typically renewed on an annual basis, subject to satellite 'health' evaluation by the insurers." 20 It can cover complete or partial failure during the operating phase. The value is agreed upon at the beginning of the satellite's service life, usually based on the replacement value. 21

Collision with space debris may be the cause of physial destruction or complete inoperability, which would result in a "total loss;" whereas, a partial loss may result if the performance of the satellite becomes impaired for any reason. 22 These failures could be due to technical faults, human error, or the space environment itself.

D. Third-Party Liability Insurance:

This covers damage to other satellites, terrestrial property, bodily injury that may occur prior to or during launch, and any damage to aircraft . 23 This can also cover any damage to the government-owned launch facilities, revenue loss, service changes, and interruption of services. 24 Thus, there is insurance coverage available to purchase for space debris that falls back down to Earth (and isn't burnt up by the atmosphere) and causes damage.

In the United States, in order to obtain a launch or reentry license , the law requires the licensee to either obtain liability insurance or demonstrate an independent financial ability to compensate for the "maximum probable loss claims by – (a) a third party for death, bodily injury, or property damage or loss resulting from an activity carrier out under the license; and the United States Government against a person for damage or loss to Government property resulting from an activity carried out under the license." 25 However, the maximum amount a licensee could be responsible for is $500 million for third-party injury and $100 million for any damage to Government property . 26 Under this section, the term " third-party" does not include any crew, government astronauts, or space flight participants. 27 In fact, the U.S. requirements include provisions that require "cross waivers" from space flight participants in personal travel aboard commercial spacecraft. 28

Few nations actually require space insurance, partially due to the fact that so much of space activity is unregulated. 29 In 2019, only 40 states had laws that either established space agencies or otherwise regulated activity in some manner.

II. UNDERWRITING PROCESS

The process for obtaining and underwriting space insurance policies differs significantly from other areas of insurance. It is a highly technical and individualized process that usually takes more than a year to complete, with most "insurance contracts [being] finalized from six months to three years prior to launch." 30 To start the process, the manufacture provides detailed information regarding the technical aspects of the satellite and launch equipment, which the client presents to brokers. 31 The technical information contains "specifics of the launch and satellite operations, coverage for partial or full loss, associated costs, . . . lunch service availability . . . the program risks, history of the rocket, modifications, and reasons for using new technology, if any." 32

Brokers then present this information to underwriters who ask a series of questions involving "communication systems, payload, electrical power systems, attitude control systems, and mechanical systems, including appendage and solar arrays." 33 If, at any point throughout the process, the manufacturers make a "material change" to plans, they must notify the underwriters. The underwriters then take all of this information into account and submit bids for the insurance package. 34 The policies are then negotiated and written, with most of the process happening under NDAs. 35

In terms of market share, space insurance makes up "only 0.02% of the entire insurance market. Due to the small number of insureds, and high severity of losses, the available capacity to underwrite policies fluctuates, usually in response to a recent loss event." 36 Premiums, which take a considerable amount of time to calculate due to the individualized and technical underwriting process, depend on the entire industry. 37 "If, as in 2018 and 2019, a series of insured launches fail and those operators submit claims, then the insurance industry will have to raise premiums across the board to offset losses." 38

Space insurance is also often syndicated , meaning that each individual underwriter assumes a percentage of the risk. Approximately 10- 15 large companies and 20-30 smaller companies may participate in a given insurance package. Typically, multiple insurance underwriters cover each risk for a fractional share, thereby spreading the risk throughout the global markets. 39

Ultimately, part of the difficulty with space insurance is that a policy is being written for a device that cannot be examined if something goes wrong. 40 Brokers and underwriters conduct extensive examinations and research on the project, but when a partial loss occurs parties often have to use a "pre-agreed loss formula in the policy usually relating to the reduced useful life or commercial capability of a satellite." 41 In reality, though, that pre-agreed formula might not fit the actual loss since they cannot inspect it.

III. SELF-INSURERS

Space insurance accounts for roughly 10% of the total cost associated with projects, third only to satellite acquisition and launch service expenses. 42 Because of the high costs, many entities opt out of insurance— 48% of satellites in-orbit in 2015 were uninsured . 43

Additionally, entities may opt for launch-only insurance, which is increasingly common with LEO satellite operators. If companies are launching small satellites or they have a lot of satellites in orbit, they may find it redundant to insure every one and instead just plan for a few to fail. 44 Ultimately, smaller launches require less financial assistance, which means banks, who tend to favor insurance, are not there to push the entities towards insurance. 45

IV. CONCLUSIONS

It is unsettled law as to who might actually be liable for damages related to space debris. The Convention on International Liability for Damage Caused by Space Objects (i.e. the Space Liability Convention) holds that a company or institution will only be liable for issues caused by its space debris if it was negligent in some way. 46 What qualifies as negligence is not defined specifically in the Convention as it does not define the ways in which a space object might cause damages. If space debris belonging to another country were to fall and cause damage or injury to a U.S. citizen, there are diplomatic and international treaties in place that would likely apply to address claims that could be made. 47 However, leaving the "space junk" up there has a greater impact on the operations of government space agencies and commercial operators that impact the effectiveness of space operations generally.

2. Noor Zainab Hussain & Carolyn Cohn, Launching into space? Not so fast. Insurers balk at new coverage, Reuters (Sept. 1, 2021), https://www.reuters.com/lifestyle/science/launching-into-space-not-so-fast-insurers-balk-new-coverage-2021-09-01/ .

3. How do you clean up 170 million pieces of space junk? – Federation of American Scientists (fas.org)

7. The FCC Is Finally Taking Space Junk Seriously – Scientific American

8. See Covers for Satellites in Commercial Space Flight , Munich Re, https://www.munichre.com/en/solutions/for-industry-clients/space-and-satellite-insurance-solutions.html ("Launch plus Life is the unique combination of launch insurance and in-orbit insurance.")

9. The Commercial Space Insurance Industry , Select Committee of the U.S. House of Representatives, https://www.govinfo.gov/content/pkg/GPO-CRPT-105hrpt851/pdf/GPO-CRPT-105hrpt851-2-11.pdf .

10. Jeanne Suchodolski, An Overview and Comparison of Aviation and Space Insurance , 14 J. Bus. & Tech. l. 469, 474 (2019), https://digitalcommons.law.umaryland.edu/cgi/viewcontent.cgi?article=1303&context=jbtl .

13. Suchodolski, supra note 3 at 480.

14. Covers for Satellites in Commercial Space Flight , supra note 1.

18. Space & Satellite Insurance: Risk Covering from Pre-Launch to Operation in Orbit (beinsure.com)

20. Pamela L. Meredith et al., Commercial Space Transportation: Liability and Insurance 3 (2009), https://www.mcgill.ca/iasl/files/iasl/Session_7_Meredith.pdf .

21. Space and satellite insurance solutions | Munich Re

22. Space & Satellite Insurance: Risk Covering from Pre-Launch to Operation in Orbit (beinsure.com)

23. Suchodolski, supra note 3 at 480.

24. T he Commercial Space Insurance Industry , Select Committee of the U.S. House of Representatives, https://www.govinfo.gov/content/pkg/GPO-CRPT-105hrpt851/pdf/GPO-CRPT-105hrpt851-2-11.pdf .

25. 51 U.S.C. § 50914 (a).

26. 51 U.S.C. § 50914(a)(3).

27. 51 U.S.C. § 50902(26) .

28. Suchodolski, supra at 493; 51 U.S.C. § 50914(b)(1)(B)(iii) (2015).

29. Suchdolski, supra note 3 at 487.

30. Id. at 305.

31. Id. at 304.

34. Id. at 305.

36. Suchdolski, supra note 3 at 475.

37. Rachel Zisk, The Space Insurance Landscape , Payload (Oct. 31, 2022), https://payloadspace.com/the-space-insurance-landscape/ .

39. The Commercial Space Insurance Industry , Select Committee of the U.S. House of Representatives, https://www.govinfo.gov/content/pkg/GPO-CRPT-105hrpt851/pdf/GPO-CRPT-105hrpt851-2-11.pdf .

40. Space Insurance and the New Era of Space Exploration , Global Aerospace (June 29, 2020), https://www.global-aero.com/space-insurance-and-the-new-era-of-space-exploration/ .

42. Suchdolski, supra note 3 at 476. https://www.global-aero.com/space-insurance-and-the-new-era-of-space-exploration/ .

44. Zisk, supra note 31.

46. Liability Convention (unoosa.org) ; Space Law: Liability for Space Debris (aviationdisasterlaw.com)

47. Space law protects you from falling debris, but there are no legal penalties for leaving junk in orbit (phys.org)

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

United States

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

• MyNewMarkets.com
• Claims Journal
• Insurance Journal TV
• Academy of Insurance
• Carrier Management

Featured Stories

• Verisk: US Reconstruction Costs Up 5.2%
• Virginia’s New Bad Faith Law: What to Know

Current Magazine

• Read Online

To the Moon and Back: Space Tourism and Insurance

Powered by InsuranceJournal.tv

Space tourism, or human space travel for recreational purposes, is in its early days. For insurers, this means it’s an emerging business that most aren’t ready to tackle yet.

Neil Stevens, senior vice president of aviation and space at Marsh, told Reuters in a June 2021 article that “the aviation, aircraft insurance market, and the like, are less keen to take on risks that involve spacecraft.” He added that whether space tourism trips fall under aviation or space insurance is a “million dollar question.”

While some insurance solutions are now in their early stages – travel insurance company Battleface is one company that has underwritten a space tourism product – many insurers are still hesitant.

However, Michelle Peters, director of research and education at space entertainment and tourism company Zero-G, has a solution for insurers who want to learn about this emerging area of risk: Take a flight with Zero-G.

The company says on its website that it aims to make the adventure of space accessible to the public. Its zero gravity flights, which take place on a modified Boeing 727-200 called G-FORCE ONE, offer individuals the opportunity to experience weightlessness without leaving earth through the use of a hydraulic system.

“Space environments present challenges that we just can’t foresee because we haven’t lived and worked there yet,” she said on this episode of The Insuring Cyber Podcast . “I’m no expert, but I really feel that those people who are experts should perhaps come fly with us, understand what the environment is like, and then plan to go to space, see what they’re dealing with, and be vigilant.”

Allison Odyssey, Zero-G’s chief operating officer, added that perhaps this is an area of business insurers will be thinking more about as space tourism is likely to proliferate once the technology develops and the costs come down.

“That was always part of the plan,” she said. “We saw a similar thing in the beginning of aviation, where really only wealthy people could fly in the early days, and the tickets were really expensive. Over time, as those companies got more and more business and had more and more impact, they were able to lower the prices and bring it to the masses. I just see that happening here as well.”

That’s not the only thing about space travel that’s proliferating. March is Women’s History Month, and Peters and Odyssey both said that they’re happy to see more women entering the space field. NASA reported on its website last year that as of March 2022, 75 women have flown in space, including cosmonauts, astronauts, payload specialists, and space station participants.

“One of the things that is happening with the maturity of the industry is we’re finding positions for all types of expertise,” Odyssey said. “I think the opportunity to get involved in commercial space is greater than it’s ever been, and it’s only going to get easier. Like I said, we’re broadening our reach as far as the types of skills we need.”

Peters agreed, adding that as more women enter the space industry, it can have a trickle-down effect.

“I think that as other young women see [women working in the space field] either on social media or in news stories or hear about their stories, they understand that there are role models and mentors out there who are like them. And I think that through that, the path to STEM careers becomes far less intimidating for people who are interested.”

With the likelihood of space travel becoming more accessible, Peters said she feels optimistic that insurers will become more comfortable with space tourism as a risk. This is, in part, because space tourism providers, including Zero-G, continue to demonstrate the safety and security of passengers as a number one priority over profits, she said.

“The record is going to stand on its own merits,” she said. “Over time and with success that stems from that [safety] policy, I think the insurers’ risk aversion is going to diminish.”

That said, one more question remains if insurers do follow Peters’ advice and take a flight with Zero-G: What is weightlessness like?

Peters equated it to her experiences scuba diving.

“I’m a scuba diver, so the closest that I can get is maybe like floating in still water, but you don’t get the pressure that you would get from being underwater or in water,” she said. “It’s very zen-like.”

Odyssey had a different perspective as an avid skydiver.

“I’ve jumped 150 times, and free fall is, as they say, a magical place,” she said. “But again, it’s just totally different than experiencing Zero-G. Zero-G is something that brings out an emotional reaction in people. It’s not just a physical sensation, so it’s just a really powerful feeling that we’re able to share. We just love it.”

While they used their experiences with scuba diving and skydiving to try explaining what floating in zero gravity is like, both women agreed that nothing quite comes close.

“Anyone that’s been up with us, that’s flown and floated, who tries to explain it will tell you the exact same thing, which is that it’s incredibly difficult to describe,” Peters said, “because there is truly no experience that adequately compares to it.”

Check out the rest of the episode to hear what else Michelle and Allison had to say, and be sure to check back for new episodes of this podcast publishing every other Wednesday along with the Insuring Cyber newsletter. Thanks for listening.

Was this article valuable?

Thank you! Please tell us what we can do to improve this article.

Thank you! % of people found this article valuable. Please tell us what you liked about it.

Here are more articles you may enjoy.

Written By Elizabeth Blosfield

Elizabeth Blosfield is Deputy Editor for Carrier Management. She can be reached at [email protected].

Latest Posts:

• Experts Say More Collaboration Needed for Critical Infrastructure Cyber Risk
• What Role Does Insurance Play in a Politically Charged Climate?
• Nationwide’s Chetan Kandhari Said the Company Is Working to Build a Bionic Workforce.

The most important insurance news, in your inbox every business day.

Get the insurance industry's trusted newsletter

• Categories: News Topics: cyber , Insuring Cyber Podcast , space tourism , The Insuring Cyber Podcast
• Have a hot lead? Email us at [email protected]

Insurance Jobs

• Property Adjuster – Inside Litigation - Remote?, IL
• Property & Casualty Claims Representative – Broker/Retail Agency – REMOTE - Remote
• Sales Executive, Personal Lines - Saint Louis, MO
• Commercial Lines Underwriting Assistant – REMOTE - Remote
• Insurance Agency Accountant / Insurance Financial Specialist - St Louis, MO (onsite)

• Inflation, the Economy and Workers’ Comp: A Positive Outlook
• Umbrella Liability: The Triple Upsell Possibility for Personal Lines Clients
• Where the AI Risks Are: Swiss Re's Top 10 Ranking by Industry
• How to Succeed in the Entertainment Insurance Business: Get creative producing with a small cast of underwriters and limited capacity.
• How Do Insurers Define Systemic Cyber Risk?

• CIAB Survey Shows Evidence of Softening Commercial P/C Market Conditions in Q2
• Family of Woman Killed by Falling Utility Pole to Receive $30M Settlement
• How Mike Lynch's Luxury Yacht Sank Within Minutes
• U.S. Firms Warn Against 'Unprecedented' Hong Kong Cyber Rules
• BMW Recalls Over 720,000 Vehicles Over Short Circuit Concern, NHTSA Says

• August 22 HO-14: More Than a Mature HO-4

• Reinsurance
• Construction
• Environmental
• Excess & Surplus
• Global Programs
• Professional Liability
• Delegated Authorities & Programs
• Structured Risk Solutions
• Architects & Engineers
• Aviation & Aerospace
• Consumer Goods & Services
• Education & Public Entities
• Entertainment & Leisure
• Equine, Livestock & Aquaculture
• Financial Services
• Food & Beverage
• Healthcare & Life Sciences
• Manufacturing
• Marine & Logistics
• Professional Services
• Real Estate
• Transportation
• Reinsurance Insights
• Reinsurance Products
• Coded Products & Certificates
• Document Library
• Fast Fast Forward
• Market Guides
• Webinars and Podcasts
• Find an Office
• Press Releases
• Inclusion and Diversity
• Get to know us
• Leadership team
• Sponsorships
• Supplier Diversity
• Sustainability
• What We Believe

Risk Consulting

• Resources & Tools
• About AXA XL
• Media Center
• Get In Touch

Space Insurance

Led by renowned space insurance experts, AXA XL offers a unique and comprehensive suite of space insurance products including pre-launch, launch, in-orbit, and liability coverage for spacecraft and launch vehicles.

Risk consultants providing comprehensive risk management solutions based on an understanding of client business priorities and goals.

AXA XL is a leading insurer in the space insurance industry. We work closely with our clients and brokers around the world to develop innovative, specialized products covering all types of spacecraft and launch vehicles through development, pre-launch, launch and in orbit.

• Launch coverage for spacecraft and launch vehicles from ignition through spacecraft separation in orbit
• Post-separation coverage for spacecraft through initial operations, deployments, orbit raising and testing
• In-orbit coverage for ongoing operations of satellites through their life
• Coverage for transponder users, including loss of revenue and extra expenses
• Coverage for satellite manufacturers for loss of incentives and warranty payments
• Coverage for launch risk guarantees
• Specialized coverage for small satellites and unique missions
• Seamless pre-launch and launch coverage
• Launch and in-orbit liability coverage

Benefits and Services

• Small satellites and launch vehicles
• Unique mission designs
• New technologies and applications
• Industry-recognized leadership in space insurance data

Client Profiles

Our clients include:

• Satellite owners, operators, manufacturers, and users
• Launch providers
• Telecommunications, earth observation and other space organizations
• Governments and institutions

We also support development of unique missions, payloads and capabilities from new, entrepreneurial space organizations.

Related Resources

Let’s Talk: Commercial aviation, rebounding and adapting

Commercial Surety Bonds are powering progress in the Era of Energy Transition

Boosting Germany’s green energy transition 

Related products, product recall insurance, livestock insurance, marine cargo insurance.

The information contained herein is intended for informational purposes only. It’s is neither an offer to sell nor a solicitation to purchase any particular insurance product. Insurance coverage in any particular case will depend upon the type of policy in effect, the terms, conditions and exclusions in any such policy, and the facts of each unique situation. No representation is made that any specific insurance coverage would apply in the circumstances outlined herein. Please refer to the individual policy wordings for specific coverage details. AXA XL is a division of AXA Group providing products and services through three business groups: AXA XL Insurance, AXA XL Reinsurance and AXA XL Risk Consulting. Not all of the insurers do business in all jurisdictions nor is coverage available in all jurisdictions.

US- and Canada-Issued Insurance Policies. In the US, the AXA XL insurance companies are: Catlin Insurance Company, Inc., Greenwich Insurance Company, Indian Harbor Insurance Company, XL Insurance America, Inc., XL Specialty Insurance Company and T.H.E. Insurance Company. In Canada, coverages are underwritten by XL Specialty Insurance Company - Canadian Branch and AXA Insurance Company - Canadian branch. Coverages may also be underwritten by Lloyd’s Syndicate #2003. Coverages underwritten by Lloyd’s Syndicate #2003 are placed on behalf of the member of Syndicate #2003 by Catlin Canada Inc. Lloyd’s ratings are independent of AXA Group.

Talk with us

You are contacting AXA XL, the P&C and Specialty division of AXA. We provide Re/Insurance to mid-sized and multinational companies, and some high-net-worth individuals.

If your enquiry pertains to personal insurance, please contact AXA .

The controller of your personal data is the AXA XL company you wish to contact with your request. The privacy policy applicable to this company can be found at: https://axaxl.com/privacy-notice

AXA XL, as a controller, uses cookies to provide its services, improve user experience, measure audience engagement, and interact with users’ social network accounts among others. Some of these cookies are optional and we won't set optional cookies unless you enable them by clicking the "ACCEPT ALL" button. You can disable these cookies at any time via the "How to manage your cookie settings" section in our cookie policy.

• Share full article

Advertisement

Supported by

The Future of Space Tourism Is Now. Well, Not Quite.

From zero-pressure balloon trips to astronaut boot camps, reservations for getting off the planet — or pretending to — are skyrocketing. The prices, however, are still out of this world.

By Debra Kamin

Ilida Alvarez has dreamed of traveling to space since she was a child. But Ms. Alvarez, a legal-mediation firm owner, is afraid of flying, and she isn’t a billionaire — two facts that she was sure, until just a few weeks ago, would keep her fantasy as out of reach as the stars. She was wrong.

Ms. Alvarez, 46, and her husband, Rafael Landestoy, recently booked a flight on a 10-person pressurized capsule that — attached to a massive helium-filled balloon — will gently float to 100,000 feet while passengers sip champagne and recline in ergonomic chairs. The reservation required a $500 deposit; the flight itself will cost $50,000 and last six to 12 hours.

“I feel like it was tailor-made for the chickens like me who don’t want to get on a rocket,” said Ms. Alvarez, whose flight, organized by a company called World View , is scheduled to depart from the Grand Canyon in 2024.

Less than a year after Jeff Bezos and Richard Branson kicked off a commercial space race by blasting into the upper atmosphere within weeks of each other last summer, the global space tourism market is skyrocketing, with dozens of companies now offering reservations for everything from zero-pressure balloon trips to astronaut boot camps and simulated zero-gravity flights. But don’t don your spacesuit just yet. While the financial services company UBS estimates the space travel market will be worth $3 billion by 2030, the Federal Aviation Administration has yet to approve most out-of-this-world trips, and construction has not started on the first space hotel. And while access and options — not to mention launchpads — are burgeoning, space tourism remains astronomically expensive for most.

First, what counts as space travel?

Sixty miles (about 100 kilometers) above our heads lies the Kármán line, the widely accepted aeronautical boundary of the earth’s atmosphere. It’s the boundary used by the Féderátion Aéronautique Internationale, which certifies and controls global astronautical records. But many organizations in the United States, including the F.A.A. and NASA, define everything above 50 miles to be space.

Much of the attention has been focused on a trio of billionaire-led rocket companies: Mr. Bezos’ Blue Origin , whose passengers have included William Shatner; Mr. Branson’s Virgin Galactic , where tickets for a suborbital spaceflight start at $450,000; and Elon Musk’s SpaceX , which in September launched an all-civilian spaceflight, with no trained astronauts on board. Mr. Branson’s inaugural Virgin Galactic flight in 2021 reached about 53 miles, while Blue Origin flies above the 62-mile mark. Both are eclipsed by SpaceX, whose rockets charge far deeper in to the cosmos, reaching more than 120 miles above Earth.

Balloons, like those operated by World View, don’t go nearly as high. But even at their maximum altitude of 18 or 19 miles, operators say they float high enough to show travelers the curvature of the planet, and give them a chance to experience the overview effect — an intense perspective shift that many astronauts say kicks in when you view Earth from above.

Now, how to get there …

Blue Origin and Virgin Galactic, which are both licensed for passenger space travel by the F.A.A., are open for ticket sales. (Blue Origin remains mum on pricing.) Both companies currently have hundreds or even thousands of earthlings on their wait lists for a whirl to the edge of space. SpaceX charges tens of millions of dollars for its further-reaching flights and is building a new facility in Texas that is currently under F.A.A. review.

Craig Curran is a major space enthusiast — he’s held a reserved seat on a Virgin Galactic flight since 2011 — and the owner of Deprez Travel in Rochester, N.Y. The travel agency has a special space travel arm, Galactic Experiences by Deprez , through which Mr. Curran sells everything from rocket launch tickets to astronaut training.

Sales in the space tourism space, Mr. Curran acknowledges, “are reasonably difficult to make,” and mostly come from peer-to-peer networking. “You can imagine that people who spend $450,000 to go to space probably operate in circles that are not the same as yours and mine,” he said.

Some of Mr. Curran’s most popular offerings include flights where you can experience the same stomach-dropping feeling of zero gravity that astronauts feel in space, which he arranges for clients via chartered, specialized Boeing 727s that are flown in parabolic arcs to mimic being in space. Operators including Zero G also offer the service; the cost is around $8,200.

You can almost count the number of completed space tourist launches on one hand — Blue Origin has had four; SpaceX, two. Virgin Galactic, meanwhile, on Thursday announced the launch of its commercial passenger service, previously scheduled for late 2022, was delayed until early 2023. Many of those on waiting lists are biding their time before blastoff by signing up for training. Axiom Space, which contracts with SpaceX, currently offers NASA-partnered training at Houston’s Johnson Space Center. Virgin Galactic, which already offers a “customized Future Astronaut Readiness program” at its Spaceport America facility in New Mexico, is also partnering with NASA to build a training program for private astronauts.

Would-be space tourists should not expect the rigor that NASA astronauts face. Training for Virgin Galactic’s three-hour trips is included in the cost of a ticket and lasts a handful of days; it includes pilot briefings and being “fitted for your bespoke Under Armour spacesuit and boots,” according to its website.

Not ready for a rocket? Balloon rides offer a less hair-raising celestial experience.

“We go to space at 12 miles an hour, which means that it’s very smooth and very gentle. You’re not rocketing away from earth,” said Jane Poynter, a co-founder and co-chief executive of Space Perspective , which is readying its own touristic balloon spaceship, Spaceship Neptune. If all goes according to plan, voyages are scheduled to begin departing from Florida in 2024, at a cost of $125,000 per person. That’s a fraction of the price tag for Blue Origin and Virgin Galactic, but still more than double the average annual salary of an American worker.

Neither Space Perspective nor World View has the required approval yet from the F.A.A. to operate flights.

Unique implications

Whether a capsule or a rocket is your transport, the travel insurance company battleface launched a civilian space insurance plan in late 2021, a direct response, said chief executive Sasha Gainullin, to an increase in space tourism interest and infrastructure. Benefits include accidental death and permanent disablement in space and are valid for spaceflights on operators like SpaceX, Blue Origin and Virgin Galactic, as well as on stratospheric balloon rides. They’ve had many inquiries, Mr. Gainullin said, but no purchases just yet.

“Right now it’s such high-net-worth individuals who are traveling to space, so they probably don’t need insurance,” he said. “But for quote-unquote regular travelers, I think we’ll see some takeups soon.”

And as the industry grows, so perhaps will space travel’s impact on the environment. Not only do rocket launches have immense carbon footprints, even some stratospheric balloon flights have potentially significant implications: World View’s balloons are powered by thousands of cubic meters of helium, which is a limited resource . But Ted Parson, a professor of environmental law at the University of California, Los Angeles, said that space travel’s environmental impact is still dwarfed by civil aviation. And because space travel is ultra-niche, he believes it’s likely to stay that way.

“Despite extensive projections, space tourism is likely to remain a tiny fraction of commercial space exploration,” he said. “It reminds me of tourism on Mt. Everest. It’s the indulgence of very rich people seeking a transcendent, once-in-a-lifetime experience, and the local environmental burden is intense.”

Stay a while?

In the future, space enthusiasts insist, travelers won’t be traveling to space just for the ride. They’ll want to stay a while. Orbital Assembly Corporation, a manufacturing company whose goal is to colonize space, is currently building the world’s first space hotels — two ring-shaped properties that will orbit Earth, called Pioneer Station and Voyager Station. The company, quite optimistically, projects an opening date of 2025 for Pioneer Station, with a capacity of 28 guests. The design for the larger Voyager Station , which they say will open in 2027, promises villas and suites, as well as a gym, restaurant and bar. Both provide the ultimate luxury: simulated gravity. Axiom Space , a space infrastructure company, is currently building the world’s first private space station; plans include Philippe Starck-designed accommodations for travelers to spend the night.

Joshua Bush, chief executive of travel agency Avenue Two Travel , has sold a handful of seats on upcoming Virgin Galactic flights to customers. The market for space travel (and the sky-high prices that come with it), he believes, will evolve much like civilian air travel did.

“In the beginning of the 20th century, only very affluent people could afford to fly,” he said. “Just as we have Spirit and Southwest Airlines today, there will be some sort of equivalent of that in space travel, too. Hopefully within my lifetime.”

52 Places for a Changed World

The 2022 list highlights places around the globe where travelers can be part of the solution.

Follow New York Times Travel on Instagram , Twitter and Facebook . And sign up for our weekly Travel Dispatch newsletter to receive expert tips on traveling smarter and inspiration for your next vacation. Dreaming up a future getaway or just armchair traveling? Check out our 52 Places for a Changed World for 2022.

What’s Up in Space and Astronomy

Keep track of things going on in our solar system and all around the universe..

Never miss an eclipse, a meteor shower, a rocket launch or any other 2024 event  that’s out of this world with  our space and astronomy calendar .

In 1924, a radio receiver built for the battlefields of World War I tested the idea that humans were not alone in the solar system, heralding a century of searches for extraterrestrial life .

NASA doesn’t say the Boeing Starliner astronauts are “stranded”  on the International Space Station, but it’s a word that a lot of people are using.

A study adds strong evidence to the hypothesis that the asteroid that killed the dinosaurs  came from a family of objects that originally formed well beyond the orbit of the planet Jupiter.

Scientists working with NASA’s Perseverance rover state emphatically that they are not claiming to have discovered life on Mars. But they are very excited about what they found on this rock .

Is Pluto a planet? And what is a planet, anyway? Test your knowledge here .

• space travel agents

travel insurance

• tour operators
• / travel insurance

Allianz – personal space flight insurance

• Insurance News
• InsurTech News
• Investing News
• Reinsurance News
• Cyber Insurance News
• Crypto Blockchain News
• M&A Insurance News
• Agriculture Insurance
• Aviation Insurance
• Car & Auto Insurance
• D&O Insurance
• Health Insurance
• Home Insurance
• Insurance Marketing
• Marine & Cargo Insurance
• Life Insurance
• P&C Insurance
• Pet Insurance
• Space Insurance
• Travel Insurance
• Smart Contract
• Artificial Intelligence
• Cloud computing
• Internet of Things
• Machine learning
• Asset Management
• Human Resources
• Risk Management

Space Insurance Industry Outlook: Price & Coverage for Satellites & Space Flight

Key highlights hide, effective regulation is a balancing act, insurers to step up, space insurance pricing and risk, 4 steps to a successful space insurance placement, insurance history of supporting satellite missions, the future space ecosystem.

Space insurance is roughly divided into four types of coverage. They reflect the phases of most satellite projects – preparing and launching the satellite, then positioning and operating it in orbit.

Welcome to the commercial space age, where private firms build and operate rockets, host myriads of satellites and take people up to space for fun. With ever-more crowded orbits and debris in largely unregulated spheres, outer space hosts plenty of risks, opportunities and unknowns for insurers.

Space insurance solutions are tailored to each policyholder’s needs. They may cover loss of income as well as material damage.

According to Swiss Re Insitute Report , the insurance of satellites with complex and new types of payload is where the know-how and experience of our aerospace experts really pays off. The deployment of previously untried satellites always raises questions about their insurability.

A lot of hard work and dedication is required during all phases. Manufacturer’s technical specifications and presentations, discussions with the manufacturer, operator and broker all need to be analysed before the pieces of the puzzle can be assembled into a well-designed coverage concept.

At the end of last year, China informed the UN office for Outer Space Affairs that for a second time, its space station had to conduct evasive manoeuvres to avoid collisions with Starlink satellites.

The incident highlights that private companies like SpaceX – which launched Starlink – run space programmes and have joined national players in the space race. With dense satellite coverage, Starlink and competitors aim to provide high-speed broadband to even the remotest places on Earth.

National space organisations (eg, NASA) are eager to partner with new commercial players, and bodies like the European Commission advocate “space for everyone”. This underlines the opportunities offered by space exploration, both commercial and public-sector sponsored.

Prepare and start early

Underwriters are becoming more selective, particularly when newer technologies are involved, and are asking for detailed risk information. It’s important to understand the key information that insurers will require, and to allow adequate time for negotiation.

Understand your priorities

In a challenging market, it’s important to know your priorities to ensure an optimum balance of breadth of coverage, insured value, and the overall premium spend. Having a clear strategy in place before commencing negotiations with insurers will be helpful.

Respect long-term relationships, but challenge the status quo

Strong, long-term relationships with the lead insurers can help bring beneficial results at placement. Still, it is important to understand the context of your quotes and ensure that they represent good value propositions. Try to build relationships with a number of lead markets to ensure enough support is available if/when placements become more challenging (for example, on-orbit anomalies/component failures).

Best Travel Insurance in California: Top Plans for Your Next Trip

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate travel insurance products to write unbiased product reviews.

Whether you're road-tripping to Palm Springs or passing through LAX to catch a flight around the world, the best travel insurance companies for Californians offer comprehensive coverage options for a wide range of people and needs.

For this guide, we looked at coverage options, customizability, and the best companies for specific situations, such as pre-existing conditions.

Here are Business Insider's picks for the best travel insurance companies in California. 

Best Travel Insurance Companies in California

• Best Overall: Nationwide Travel Insurance
• Runner-Up: AXA Assistance USA
• Best for Cruises: Travel Guard
• Best Reputation:  C&F Travel Insured
• Best for Pre-existing Conditions:   Tin Leg Travel Insurance
• Best for Digital Nomads:   WorldTrips Travel Insurance
• Best Low-Cost Option:   Trawick International Travel Insurance
• Best for Road Trips: Travelex Travel Insurance
• Best for Adventure Sports: World Nomads Travel Insurance

Nationwide Travel Insurance

Nationwide is of the largest players in the travel insurance space, offering nearly endless options for any customer on the travel spectrum, including annual travel insurance plans which can offer frequent travelers the flexibility to "set it and forget it" on their travel insurance coverage.

Nationwide Essential also offers some of the most affordable policies in the market compared to similar plans from competitors, which makes it a great pick for just about anyone. Buyers can discuss bundling options as Nationwide also sells homeowners, auto, pet, and other insurance products. Its travel insurance quoting is just as easy as it has been with other Nationwide insurance products.

Read our Nationwide travel insurance review .

AXA Assistance USA

AXA offers consumers a great option for no-stress travel insurance: low-priced plans, generous coverage limits on key categories including primary insurance on lost luggage, and up to 150% reimbursement for qualifying trip cancellations.

While add-ons are limited and rental car coverage is not included by default on cheaper plans, AXA is a perfect fit for travelers who don't plan to drive (or who already hold a travel credit card with rental car coverage), and don't need any additional bells and whistles.

Read our AXA Assistance USA travel insurance review .

Travel Guard

AIG is well-known insurance provider, and a great fit for travelers who want to ensure that they can get their money back in the event of canceled or interrupted travel plans.

While the company's policies can be pricey compared to its competitors, the high medical and evacuation limits make AIG a solid choice for older travelers who value peace of mind and simplicity over highly customizable plans that may be bolstered with medical upgrades.

Read our AIG Travel Guard travel insurance review .

C&F Travel Insured

While every travel insurance company has negative reviews about its claims process, C&F Travel Insured 's claims process has a consistent stream of positive reviews. One customer wrote that C&F processed a claim within 48 hours. Additionally, C&F regularly responds to customer reviews within one business week, making reviews a consistent way to reach the company.

Additionally, in C&F's fine print, it mentions that any claims that take more than 30 days to pay out will begin to accrue interest at 9% APY.

C&F's reputation isn't the only thing to speak highly of. It offers an array of add-ons uncommon in the travel insurance industry, such as Interruption for Any Reason insurance and CFAR coverage for annual plans. C&F also offers discounts for children on its Protector Edge plan and free coverage on its Protector plan.  

Read our C&F Travel Insured review . 

Tin Leg Travel Insurance

Tin Leg is a great fit for travelers with medical issues in particular. Seven of Tin Leg's eight travel plans include coverage for pre-existing conditions as long as you purchase your policy within 15 days of your initial trip payment.

Thanks to coverage for pre-existing medical conditions as well as for potential COVID-19 infection while traveling, this company offers some of the best financial investment options for travelers who are or will be exposed to higher health risks and issues.

Read our Tin Leg travel insurance review .

WorldTrips Travel Insurance

WorldTrips has affordable premiums, highly customizable add-ons, and generous coverage for core categories of travel insurance. All this makes it a great option for digital nomads, students studying abroad and backpackers.

However, travelers should keep in mind that plans are not particularly flexible, and coverage amounts are limited unless you plan ahead to pay for the areas and amounts that you need.

Read our WorldTrips travel insurance review .

Trawick International Travel Insurance

Trawick offers low premiums across its five plans, most of which offer coverage for pre-existing conditions. You'll find robust medical travel insurance that can help higher-risk and anxious travelers find peace of mind while on the road. This company also offers high medical evacuation coverage limits, up to $1,000,000.

Read our Trawick travel insurance review .

Travelex Travel Insurance

Travelex offers three plans:

• Travel Basic
• Travel Select
• Travel America

The Travelex America plan is meant for trips limited to the U.S., but it has the highest coverage limits in many areas compared to its other programs. If you're flying somewhere, the lost baggage limits are higher. Its natural strengths shine for road trippers, though. Travelex America adds coverage for roadside service and rental car coverage for unexpected accidents. It also covers pets should you be involved in an accident while on the road.

While your standard auto insurance does extend to car rentals within the U.S. for a limited time, any accident would affect future rates. Travelex would eliminate the risk of reporting to your auto insurance provider for minor incidents within its purview.

Read our Travelex Travel Insurance review .

World Nomads Travel Insurance

World Nomads distinguishes itself from others by covering over 300 sports and activities, from skydiving to golf. Additionally, its one of the few travel insurance companies that allow you to purchase after departing for your destination. However, you'll have a 72-hour waiting period before coverage kicks in.

That said, World Nomads doesn't have the highest coverage limits compared to its competitors on this list, travel medical insurance capping out at $100,000. It also isn't the most flexible provider, only providing two plans to choose from with no options for pre-existing condition coverage. Yet, World Nomads still stands out for its sports coverage and post-departure coverage.

Read our World Nomads travel insurance review .

Get Travel Insurance Quotes in California

Faqs about the best travel insurance in california.

There isn't one best travel insurance company; there are many great providers on the travel insurance market today. Our overall winner was Nationwide for its breadth of coverage options. AIG Travel Guard, AXA, Berkshire Hathaway, Tin Leg, WorldTrips and Trawick also made the cut. The best pick for you will depend on what features you value the most, like a low premium or high coverage limits.

While coverage varies by policy, common exclusions often include pre-existing medical conditions (unless you have purchased a waiver), accidents caused by high-risk activities if not specifically covered (e.g., skydiving, scuba diving), travel for medical procedures, and events known before purchasing the policy (e.g., traveling during a pandemic). Always read your policy carefully to understand the exclusions.

The average cost of travel insurance is 4% to 8% of your total trip cost, so it could vary widely depending on where you're traveling and the length of your trip. Your age, the number of people in your group, and other factors can also influence how much you'll pay.

Yes, travel insurance typically offers some coverage of canceled flights, but if this benefit is important to you, make sure you read the fine print of your policy to make sure it offers adequate reimbursement. If you think you may need to cancel your travel plans, you should consider purchasing cancel for any reason (CFAR) travel insurance .

The best travel insurance for adventure sports is World Nomads , which covers over 300 sports in its base plan.

How We Reviewed the Best Travel Insurance Companies

To come up with our list of the best travel insurance companies, we evaluated each insurer based on the following factors:

Guide Methodology: What We Considered

Policy Types

Travel insurance is essential, but often underused partly because people aren't getting what they want. Business Insider's 2023 travel study showed 10.65% of travelers surveyed bought cancel for any reason insurance. Cost may be a factor, but in many cases, the coverage is more affordable than you might think. Regardless, companies must offer a diverse range of coverage options. We award five stars to companies offering all standard coverages and additional options like pet and sports equipment protection.

Our 2023 travel study indicated the majority of purchases were made through the travel provider (ex: flight protection insurance when you're purchasing your airline tickets). While these may be sufficient for some customers, we look for companies offering a more comprehensive range of services.

According to the U.S. Travel Insurance Association, the average cost of travel insurance will be between 4% and 8% of total travel expenses. Anything beyond that price point should include additional benefits beyond the standard inclusions, such as CFAR protection or upgraded medical coverage. Anything below that 4% threshold may leave you lacking important or sufficient coverage in an emergency.

Convenience and Flexibility

Whether you're an infrequent traveler or a suitcase warrior, a good travel insurance company should have you covered. In many cases, you might not even have to talk to a person in order to purchase your policy.

Many people think of travel insurance in context with specific trips, but most of these top contenders sell both single-trip and multi-trip policies, also known as annual travel insurance. Some companies also offer plans specifically designed for cruisers, students abroad, and business travelers. (Read our guide to the best cruise travel insurance companies for more details.) Finally, all of these providers offer multiple options for getting the specific areas and amounts of coverage that you want.

Claims Handling

Most travelers never have a large claim. Premiums are low, and it provides peace of mind for the just in case situations. So they leave reviews based on their reduced stress levels. But what happens if you lose your luggage or have to stay a few extra days due to an unexpected accident? Will your insurance carrier cover your claim without all the hassle? We check real customer reviews to sort this out for you.

Ease of Use and Support

When purchasing, during your trip, and throughout the claims process, you may need extra support. Does the company have a 24/7 help line? Does it have an online or mobile system allowing you to self-manage? Essentially, what are the options when you need help? We look at the big picture to evaluate the average customer experience with each company.

You can read our full insurance rating methodology for even more details.

• Retail investing
• The stock market
• Debt management
• Credit scores
• Credit bureaus
• Identity theft and protection

• Main content

8 times your credit card’s travel insurance might not cover you

Editor's Note

Travel insurance is a great perk that comes with a number of travel rewards credit cards . If you're traveling and something goes wrong — like lost luggage, a trip delay or an unplanned medical emergency — there's a chance your credit card's travel protection could save you a lot of money.

Although some level of travel insurance can be a valuable credit card benefit, it's also important to realize that it won't cover every scenario. Like any insurance coverage, there are times when the travel insurance that comes with your credit card might not protect you.

Every policy is different, and you'll need to check with your card issuer to confirm specific policy details and limitations. Typically, you can find a full guide to your card's benefits and exclusions online.

Here are eight scenarios where your credit card's travel insurance probably won't be helpful.

Paying with the wrong credit card

Some card issuers require you to pay for travel-related expenses (or, at least, a portion of them) with their specific card to be covered if something goes wrong. But if you use multiple cards to pay for your travel purchases, perhaps in a quest to score the most rewards possible, you might find yourself only partially protected.

For example, if you pay for your flights and hotel room with your Ink Business Preferred® Credit Card but use something else to pay for the excursions on your trip. In this scenario, the excursions might not be covered if your travel plans are unexpectedly cut short because a hurricane rolls into town. However, if the second card you used also offers travel insurance, you might simply need to make multiple claims.

Related: Best credit cards with travel insurance

Preexisting medical conditions

If you need to cancel your trip due to a preexisting medical condition, you may have a hard time getting a reimbursement with your card's trip cancellation coverage. The same rule of thumb may apply if you need an emergency medical evacuation during your trip.

Depending on the card issuer's travel insurance policy, there is a potential workaround here. In a situation where you didn't know about the medical condition in advance, you might be able to make a convincing case when you file a claim.

Traveling for medical treatment

Are you planning a trip to a destination with the intention of visiting a doctor or medical facility? If so, that action hits pretty close to the definition of traveling with a preexisting condition.

When the purpose of your trip is to seek medical treatment, there's a good chance your credit card's insurance policy won't cover you if a problem comes up. Instead, you might need to consider a stand-alone travel insurance policy with a waiver for preexisting conditions if you want coverage for this type of scenario.

Related: How to pick the right travel credit card for you

Length of the trip doesn't qualify for coverage

The travel insurance policy offered through your credit card may only apply to trips of a certain length. You could run into coverage issues here if your trip is either too long or too short.

For example, with the Chase Sapphire Reserve® , you won't be covered if you're traveling for more than 60 days. With The Business Platinum Card® from American Express , travel that exceeds 365 days away from your city of residence is ineligible for trip cancellation and interruption claims.

Traveling in a war zone

Taking a trip to an area that's deemed to be a war zone (either declared or undeclared) can be troubling for several reasons, but one concern is canceled flights or other travel-related issues due to military or war-like situations. In that case, related expenses are often ineligible for travel insurance coverage through a credit card provider.

Whether war breaks out before or after you arrive at your destination, your card's travel insurance benefits likely won't cover you. If you're traveling to an unstable location or one that has a history of unrest, you may want to consider purchasing supplemental travel insurance for added peace of mind.

Recently filed claim

Some credit card travel insurance policies have an upper limit of how much money you can claim for reimbursement per 12-month period. So, if you've already filed a large claim in the last 12 months, you might not be eligible to get paid for another.

It's worth noting that The Platinum Card® from American Express offers many of its benefits per trip, so you may not have to worry as much about this particular limit if you're a cardholder.*

*Eligibility and benefit level varies by card. Terms, conditions and limitations apply. Visit americanexpress.com/benefitsguide for details. Policies are underwritten by New Hampshire Insurance Company, an AIG Company.

Related: Best credit cards that offer trip cancellation and interruption insurance

You test positive for COVID-19

COVID-19 is often a non-eligible sickness to qualify for coverage with certain credit card travel insurance policies. Whether you have to cancel a trip, change your travel dates or quarantine due to a positive COVID-19 test result, you might be stuck paying those expenses on your own.

All protection isn't created equal

The travel insurance provided by different card issuers comes with different types of coverage. Take the Chase Sapphire Reserve® and the Chase Sapphire Preferred® Card as examples. Both cards offer insurance coverage for trip cancellation and trip interruption. The Amex Platinum , on the other hand, only provides this benefit on round-trip travel purchased entirely with an eligible card.*

Similarly, the Sapphire Reserve offers cardholders emergency medical evacuation insurance up to $100,000, but the Sapphire Preferred does not include this benefit.

Related: How Chase Sapphire travel insurance saved my family over $1,500

Should you purchase more coverage?

No one likes to think about what could go wrong when you travel away from home. Unfortunately, sometimes problems and even disasters happen while people are traveling. If you have the right travel rewards credit cards (and you understand how their travel insurance benefits work), you can enjoy some peace of mind.

You could also consider adding third-party travel insurance if you want to beef up your coverage. Sometimes independent travel insurance may cover you when your credit card's travel insurance policy does not.

Additional travel insurance comes at a cost. The investment makes sense in some situations; other times, it does not. If you're considering a separate travel insurance policy, it's a good idea to compare costs, benefits and coverage limitations in advance.

Related: Why I buy an annual travel insurance policy

Bottom line

Whether you choose to pay for additional third-party travel insurance or not, it's helpful to learn about the travel protections the credit cards sitting in your wallet may offer you. Just remember to learn about the rules and limitations of your card's travel insurance benefits. Otherwise, you might be in for a surprise if you ever need to use them.

Read more: Is travel insurance worth it?