Dr. Sima Adhya has her sights seton other-worldly coverage. With a degree in natural sciences fromCambridge University, a Ph.D. from University College London andfollowing a stint at U.K. defense and research agency QinetiQ, shejoined Torus as Head of Space in 2012. Torus underwrites a broadrange of traditional and innovative products within the spacesector.

What kind of insurance coverage is legally required ofprivate space flights?

U.S. regulations require that satellites have a certain limit ofthird-party liability cover, but operators do not have to insurethe asset itself. That is up to the risk appetite of the operator.Most government missions do not have asset insurance, whiletypically commercial missions do. Third-party liability, whichTorus provides, is the only cover necessitated by U.S. law, but itis a small part of the insurance for most missions.

How many private space launches take place each year,and how much do those missions generate in insurancepremiums?

The space-insurance industry as a whole generates about $800million in premiums per year. There are about 25-30 insuredlaunches annually; a typical launch will be insured for $300million with as many as 30 insurers sharing that one risk. Thisinsured amount is enough to procure another satellite and launch itif the previous one fails

What are the components, or lines of coverage, forspace-flight insurance?

The main insurance product that we offer is “Launch plus One”insurance, which offers asset cover for the launch and thevehicle's first year in orbit. After the first year, satellitestend to be renewed on an annual basis. We also provide forthird-party liability for damage to people or property duringlaunch and while the satellite is in orbit.

The general lifetime of a geo-communications satellite, whichorbits at 36,000 kilometers above the earth is 15 years. Thelimiting factor is generally the amount of fuel on board. Thesesatellites make up the majority of what we insure.

What are the top risks taken into consideration byspace-flight insurance products, and what is the scale of theirlosses?

One of the interesting things about space insurance is that ourlosses are often catastrophic. In general if something goes wrongduring the launch, you lose the entire asset.

The risk associated with collision of satellites is smallcompared with the technological risk of something going wrong withthe equipment on the spacecraft. Events in space are non-correlatedwith any natural catastrophe that happens on earth. Liabilitycoverage in orbit is not mandatory, but an operator may ask forit.

The space-insurance industry usually receives two or threeclaims per year. The riskiest part is the launch phase. Once thesatellite is separated from the vehicle and the satellite isswitched on and tested, the next few months are also quite risky.Afterward, the risk profile falls.

Are there any pricing trends in insurance rates relatedto space travel, and if so, what are they?

We've seen rates in the space market decline for years becausetechnology has been relatively stable and losses have beenrelatively low. The space-insurance market currently has a lot ofcapacity, which creates competition and rates have been decliningas a result. If they continue to decline at the same rate, we mayget to a point where there is not enough premium for losses thatwill inevitably occur, and this will not be good for insurers.

—Interviewed by Anya Khalamayzer

Corrected to show that Torus underwrites several productswithin the space sector.