TAMPA, Fla. — Indian insurance coverage specialist Tata AIG is increasing into house as the worldwide market reels from a string of heavy losses.
Tata AIG mentioned Could 13 it has began offering satellite tv for pc in-orbit third-party legal responsibility insurance coverage overlaying bodily damage and property harm, constructing on the 22-year-old firm’s experience within the aviation market.
Sushant Sarin, president of economic enterprise at Tata AIG, a three way partnership between Indian conglomerate Tata Group and U.S.-based insurance coverage agency American Worldwide Group (AIG) with greater than 8,750 staff, mentioned it’s the first non-public insurer in India to supply satellite-based protection.
“This revolutionary product caters to the rising wants of satellite tv for pc producers and operators within the Indian house sector, particularly within the wake of latest photo voltaic storm that highlights the potential hazards confronted by orbiting spacecraft,” Sarin mentioned.
“We’re assured that this may empower Indian satellite tv for pc firms to function with higher confidence and contribute to the nation’s spacefaring ambitions.”
Deepak Kumar, senior govt vp, mentioned Tata AIG will work with reinsurers internationally to dump threat.
Tata AIG plans to later present first-party property harm protection for satellite tv for pc and launch autos throughout pre-launch, launch, and in-orbit operations.
There are round 189 startups in India creating space-related companies, in line with Kumar, who can also be head of reinsurance, credit score and aviation insurance coverage on the group.
“These new entrants in house financial system are looking for monetary threat mitigation instruments to make sure sustainability of their operations,” he mentioned through electronic mail.
“Tata AIG can be a pure associate to such startup firms.”
Turbulent instances
Round $2 billion house insurance coverage claims have been reported over the past 12 months throughout 20 incidents, in line with Dubai-based underwriter Elseco, almost 10% of the estimated $23 billion worth of all insured property in orbit.
Most of those occasions occurred in 2023, a harrowing yr for the market that has raised questions on its capability to cowl future dangers.
The failure of Viasat-3 and energy points affecting the primary 4 SES O3b mPower satellites are among the many most high-profile claims.
Insurance coverage charges jumped as a lot as 100% for some house dangers within the final three months of 2023 in contrast with the identical interval in 2022, Elseco chair and CEO Laurent Lemaire mentioned.
Lemaire mentioned charges proceed to soar as roughly $1 billion in claims have come by means of for the reason that begin of this yr.
Nonetheless, he mentioned charges stay round 37% decrease than in late 2002 after declining over the previous few a long time.
Tata AIG’s Kumar mentioned: “Whereas there have been few massive losses on this section, the Area Insurance coverage market will work collectively to make sure continuity of coverages.”
Rising house exercise additionally will increase demand for insurance coverage, he added, bringing in additional revenue and making the market extra sustainable.
He pointed to how India has been enjoyable international funding guidelines amongst different measures to hunt a bigger share of the worldwide house financial system, at the moment estimated at round 2%.
