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Briefing Notes

• A peer-reviewed study underscores insurers’ duty to cover catastrophic risks tied to commercial space activity.
• Despite record growth in satellites and human spaceflight, insurers remain opaque on asteroid and comet risk.
• Without regulatory mandates, policyholders may face blanket denials if a space-related disaster strikes.

USA HERALD - In our previous coverage at USA Herald, we called out the insurance industry for treating the disappearance of interstellar comet 3I/ATLAS from Earth’s skies as a convenient excuse to stand down. With the object hidden behind the sun, reporting on space risks slowed, and insurers showed no urgency in modeling for the possibility of catastrophic impacts or orbital disruptions. That silence, we argued, looked like a dangerous abdication of duty to policyholders and shareholders alike.

Now, a detailed study published by the International Journal of Engineering Technology Research & Management confirms our concerns. The paper, Space Insurance for Commercial Space Activities: Navigating the New Frontier by Surya Narayan Saha, lays out how insurers should already be building advanced models for launch, in-orbit, and third-party liabilities tied to space activity. Instead, the industry continues to compartmentalize risk into narrow coverage products—launch, satellite, or third-party damage—without confronting the far broader implications of an asteroid event or interstellar object like 3I/ATLAS.

What the Research Shows—and What Insurers Ignore

The IJETRM paper points to an exploding commercial space economy—valued at over $423 billion in 2019 and expected to surge past $700 million for insurance premium markets by 2028. Small satellites, mega-constellations like Starlink, and space tourism all bring new liabilities. Insurers are responding with technical products covering payload loss, in-orbit malfunction, or suborbital tourist injury. Yet none of these address systemic risks from a space-borne catastrophe that could shatter satellites, disrupt communications, or devastate urban areas if debris reaches Earth.

The study stresses best practices: comprehensive risk assessments, collaboration with aerospace experts, ongoing data analytics, and flexible coverage plans. It even underscores the rising threat from orbital debris and solar storms. But where is the transparency from insurers in the United States and Europe? Shareholders hear about quarterly premium pricing shifts. Policyholders hear about “acts of God” exclusions. What neither group hears is how carriers would respond if a close-approaching asteroid, such as Apophis in 2029, altered orbital dynamics or damaged satellites critical to global commerce.