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Aon ISB Space Insurance Fundamentals PART 1 – Introduction to Space Risk Management

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Aon ISB Space Insurance Fundamentals PART 1 – Introduction to Space Risk Management Aon ISB Space Insurance Fundamentals PART 1 – Introduction to Space Risk Management Aon International Space Brokers Proprietary Why take insurance ? 2 Why Take Insurance ? 3 Why Take Insurance ? 4 Why Take Insurance ? 5 Introduction to Space Missions Typical Space Missions Mobile Satellite Fixed Satellite Remote Navigation Services Services Sensing Aon Proprietary 7 Telecom GEO mission Aon Proprietary Fixed Satellite Services 8 Examples of Remote Sensing Missions Optical (GeoEye) Radar (TerraSAR) Mobile Telecom (Globalstar) Aon Proprietary 9 Examples of MEO missions Navigation (GPS) Mobile Communications (ICO F series) Broadband (O3b) Aon Proprietary 10 Introduction to Satellite Architecture General Satellites Architecture ● The satellite is an autonomous object which needs to fulfil a specific mission over a long period of time ● Its architecture is directly driven by the mission and the specific constraints of the space environment ● Every satellite is essentially composed of: – A payload (instruments or communication module) dedicated to the mission – A platform which provides all elements necessary to the payload over the satellite lifetime ● The satellite must cope with specific space environment constraints: – Energy (i.e. full autonomy including during sun eclipses) – Thermal (-160°C in the shadow of the Earth; + 150°C in direct sunlight) – Electromagnetic (Earth radiation belts, solar storms) – Mechanical (acceleration, acoustic and vibrations constraints during launch) – Mass (with respect to the launcher capability) Aon Proprietary 12 Telecom Satellites Telecom Satellites Architecture Communication Module Service Module Ex: Spacebus 4000B2, source: ESA Aon Proprietary 14 Telecom Satellites Subsystems ● Communications – Transponders (reception, amplification & transmission) Payload ● Propulsion – Orbit raising, attitude control ● Power – Solar panels & batteries ● Structure – Absorb chocks during launch phase ● Thermal Platform – Temperature regulation within a specified range ● Attitude – Maintain specific position of satellite facing the earth ● Telemetry & Command – Control and maintenance of the satellite from the ground Aon Proprietary 15 Telecom Satellites Overview TTC Antenna Rx Ku Band Star Tracker Earth sensor Deployable Rx/Tx C Band Solar Panel Deployable Tx Ku Band Solar Array Apogee Boost Drive Mechanism 10N thrusters Motor Ex: Spacebus 4000B2, source ESA Aon Proprietary 16 Telecom Satellites Transponder Principle Aon Proprietary 17 Telecom Satellite Footprint From GEO orbit 36 000 km Aon Proprietary Telecom Satellites Capabilities Equiv 100 Ku Tx Equiv 24 Ku Tx Ex: Spacebus, source: ESA Aon Proprietary 19 Remote Sensing Satellites Remote Sensing Satellites ● Remote Sensing satellites vary according to the type of orbit they have and to the type of payload they carry (sensors, spatial resolution, spectral characteristics, swath, width, etc..) ● All these parameters are designed at the beginning of the mission definition depending on the application the satellite mission is targeting Aon Proprietary 21 Remote Sensing Orbit Aon Proprietary Remote Sensing Satellites Types & Architectures Optical Radar Others Ex: Nextar, source: NEC Satellite Systems Aon Proprietary Remote Sensing Satellites Mission Principle ● The mission principle of an imaging satellite Data Storage is to acquire images, store them onboard and finally downlink them back to a ground station. ● From a risk perspective two main criteria Data Download shall be taken into account: Data Acquisition Image Quality Image Quantity Aon Proprietary 24 Launchers Various Types of Launchers for various Types of Orbits ● Low Earth Orbit (LEO) – 500 – 2,000 km ● Medium Earth Orbit (MEO) – 2,000 - 35,000 km ● Geostationary Orbit (GEO) – 35,786 km above the equator Different classes of satellites & launchers Aon Proprietary 26 Small Launchers L M E E O O ROCKOT (107) VEGA (137) DNEPR (215) Aon Proprietary 27 Medium Launchers M G E E O O PSLV LONG MARCH 3B SOYUZ Aon Proprietary 28 Heavy Launchers G E O FALCON Heavy FALCON 9 LONG MARCH 3B ATLAS V PROTON ARIANE 5 Aon Proprietary 29 Orders of magnitude of launchers lifting capabilities Payload to SSO Launcher Mass Payload to GTO CLASS Targeted Orbit launcher 700km (tons) (kg) (kg) Rockot 107 1,700 Small LEO to MEO Vega 137 1,350 Dnepr 215 1,200 PSLV 295 3,250 800 Medium LEO to GEO Soyuz (CSG) 308 4,500 3,150 Long March 3B 426 5,000 Falcon 9 550 8,300 Heavy Mainly GTO Proton 693 6,920 Ariane 5 775 9,400 Falcon Heavy 1420 26,700 Disclaimer: Indicated values are for illustration purposes only and may not reflect the actual rockets performance capabilities Aon Proprietary 30 Ariane 5 Telecom Mission Profile (source: Arianespace) Mission duration: around 30 minutes Aon Proprietary 31 Proton Telecom Mission Profile 1/2 (source: ILS) Mission duration: around 9 hours Aon Proprietary 32 Proton Telecom Mission Profile 2/2 (source: ILS) Aon Proprietary 33 Vega Sun-Synchronous Orbit Mission Profile Typical ascent profile (two AVUM boosts mission profile / up to five possible) S/C Separation ~ 1 hour following lift-off Aon Proprietary 34 Soyuz Sun-Synchronous Orbit Mission Profile Typical ascent profile (3-stage ascend phase and 2 Fregat burns) S/C Separation ~ 1 hour following lift-off Aon Proprietary 35 Flight Events important re Space Insurance ● Intentional Ignition ● Lift-off – Is defined as the point in time of intentional – Is the point in time, following Intentional ignition of any rocket motor on the first Ignition, when the Launch Vehicle is stage of the Launch Vehicle for the physically separated, under its own power, purpose of launching a Satellite from all mechanical and electrical connections to the launch pad – Terminated Ignition is possible – “Point of no return” Aon Proprietary 36 Flight Events important re Space Insurance ● Ascend Phase and Injection ● Satellite Orbit raising ● Satellite Separation ● Satellite In-Orbit Testing ● Deployment of solar array and antennas ● Satellite Acceptance Aon Proprietary 37 Space Industry Risks Overview Space Industry Satellite Manufacturing • Satellite manufacturing Ground Equipment • Component and subsystem Satellite Services • Network Equipment • Consumer Services • Gateways • TV, Radio, Broadband • Control stations • Fixed Satellite Services • VSATs • Transponder •Consumer Equipment Agreements • Direct Broadcast • Managed Network Services (DBS) Dishes Services • Mobile terminals • Mobile Satellite Services (including sat phones) • Data, Voice • Digital Audio Radio • Remote sensing/imaging Services (DARS) Services equipment • Space Flight Management • Global Positioning Services System (GPS) hardware Launch Industry • Launch Services • Launch Vehicles Souce: Satellite Industry Association (SIA) Aon Proprietary Space Industry Risks Asset, revenues, Satellite Operator expenses, Liability Manufacturing, Transit, Satellite Manufacturer Incentives, Liability User Revenues, Expenses, Investments Investor / Lender Loss of Investment / Loan Launch Services Agency Relaunch Guarantee, Liability Aon Proprietary 40 Phases of a satellite programme Satellite Rocket Manufacturing Transit Pre-launch Launch Post Separation In-Orbit life Aon Proprietary 41 Pre-launch Financial Risks Exposures Transportation Asset Value Force majeure • Spacecraft & GSE Political Third Party Liability Program / Technical Contract Obligations Currency fluctuation Program Delay • Debt service Major exclusions • Operating expenses • War risk • Extra expenses • Radioactive contamination • Revenue loss • Financial insolvency • Terrorism… Aon Proprietary Launch & Commissioning Financial Risks Exposures Launch Vehicle Asset Value • Total failure • Spacecraft cost • Underperformance • Launch Vehicle cost Spacecraft • Insurance & other capital interest • Transfer orbit & Deployment Third Party Liability • Commissioning Manufacturer Incentives • Mission Performance Contract Obligations • Lifetime Space environment Business Interruption • Operating & extra expenses S/C Control Center • Loss of revenue S/C Operator Exclusions Aon Proprietary In-Orbit Financial Risks Exposures Spacecraft Asset Value • Mission Performance • Spacecraft cost • Lifetime • Launch Vehicle cost Space environment • Insurance & other capital interest • Collision / Debris Third Party Liability S/C Control Center Manufacturer Incentives S/C Operator Contract Obligations Exclusions Business Interruption • Operating & extra expenses • Loss of revenue Aon Proprietary Coverages available by phase Transit Pre-launch Launch In-Orbit De-Orbit AIT Manufacturing Transit & Pre-Launch Launch and In-orbit Third Party Liability All Risk (Marine Markets) (Space Markets) (Aviation Markets) (Ground Markets) Third Party Liability (Aviation Markets ) Aon Proprietary AIT, Transit and Pre-launch Insurance characteristics by phase AIT Transit Pre-launch • Large accumulation at plants or Test Centres (various satellites in the same • No accumulation between • Main accumulation at the Launch Pad clean room) satellites with launcher, launch pad, possible co- passenger, with increased risk of explosion • Industrial and Engineering Risks • Deductible not from filling of launcher tanks up to Lift Off (different treaties, different capacities) compulsory and lower • Deductible compulsory and high impact • Deductible compulsory and high impact impact on rate on rate on rate • No interference with • Inter-Party Waiver of Liability on Launch • No interference with Space Treaties Space Treaties Site Aon Proprietary Premiums & deductibles by phase AIT Transit Pre-launch
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