Financial Daily from THE HINDU group of publications
Friday, Mar 24, 2006
Financial Daily from THE HINDU group of publications Friday, Mar 24, 2006 |
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Money & Banking
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General Insurance Industry & Economy - Science & Technology Bajaj Allianz ties up with SpaceCo Our Bureau
SpaceCo would continue to insure Government projects where New India Assurance would be the primary insurer.
Mumbai , March 23 Bajaj Allianz General Insurance has entered into a tie-up with SpaceCo, an Allianz company based in France, to explore opportunities of underwriting insurance for space programmes in India. Bajaj Allianz General will be the primary insurer with reinsurance support provided by SpaceCo in the case of prospective projects SpaceCo will also offer advisory services in terms of risk management of space programmes in India through this tie-up. The company has provided reinsurance support for 10 space programmes of the Indian Space Research Organisation (ISRO) since 1990, where New India Assurance was the primary insurer. It offers insurance of the assembly and integration of the satellite as well as its transport, launch, acceptance and orbit life. Mr Pierre-Eric Lys, Managing Director, SpaceCo, said the company would continue to insure Government projects where New India Assurance would be the primary insurer.
Big potential
"There is tremendous potential in India with the growing telecommunication industry as well as the increasing number of numerous meteorological, scientific and government projects. With increasing tele-density, telecom companies would eventually turn to satellites," he said. Mr Lys said in India, SpaceCo continues to insure INSAT 2E because it has some anomalies. Most of India's satellites have, however, been insured only for the launch and a year of orbit life because that is the riskiest phase. This year will see the launch of three satellites in India and SpaceCo hopes to tap the opportunity Mr Lys also said European television companies such as Eutel SAT were outsourcing the partial manufacture of its satellite to India.
Premium charges
The premium for the insurance of the launch and one-year orbit life of a satellite is $34 million while renewal premium is 2.5-3 per cent of the sum assured. The value of a satellite in the case of complete loss is between $150-200 million. Mr Lys said satellite insurance generated global premium of around $850 million in the last year. However, only one third of the world's satellites are insured since a number of government projects are self- insured. The US and France are the largest markets for space insurance. SpaceCo has developed proprietary underwriting norms and a database of space related risks. It is one of the top three companies in the segment of space insurance.
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