Chinese insurers underwrite SpaceX rivals in space race
A surge of Chinese insurance companies is now providing coverage for rockets and satellites, marking a new battleground in the competition between China and the US. In 2016, a SpaceX rocket, which was transporting a satellite, exploded during testing, resulting in the destruction of millions in equipment. The satellite operator, Israel's Space Communications, benefited from an insurance policy valued at nearly US$300 million, which helped mitigate their losses. With the expansion of the commercial space industry—highlighted by SpaceX's IPO on Friday—the space insurance sector has evolved. Once considered specialized, it now offers protection to satellite operators, manufacturers, and space flight service providers against significant losses.
Key facts
- Chinese insurers are underwriting rockets and satellites.
- Space risk is a new front in China-US rivalry.
- In 2016, a SpaceX rocket exploded during a test.
- The destroyed satellite was owned by Israel's Space Communications.
- The insurance policy was worth almost US$300 million.
- SpaceX had its IPO on Friday.
- The space-insurance market has matured alongside the commercial space sector.
- Space insurance protects against catastrophic loss.
Entities
Institutions
- SpaceX
- Space Communications
Locations
- China
- United States
- Israel