Between 2019 and 2023, Brazilian insurance companies collected more than R$255 million with insurance for satellites, according to data from CNseg (National Confederation of Insurance Companies).
In total, five Brazilian satellites in orbit have insurance, and there are policies (contracts) for the so-called nanosatellitesweighing between 1 and 10 kilos.
The year with the highest revenue was 2021, with R$146.3 million in premiums (amounts paid for contracted coverage), a figure thousands of times higher than that of 2019, of R$8.8 million. That year, Brazil launched the Amazônia-1 satellite, the first Earth observation satellite that was fully designed, integrated, tested and operated by Brazil.
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How it works?
Insurance covers damage incurred both during the launch of satellites and during their life in orbit. In the latter case, the terms are 12 months, with annual renewals throughout the useful life of the equipment. Communication satellites, like most Brazilian ones, have a useful life of around 15 years.
According to CNseg, the high risk involved means that policies in general are covered by reinsurance, with risk sharing. In the last five years, there has been no payment of compensation in this specific line.
By offering coverage for space assets and infrastructure, insurers ensure that the operation’s investments are protected against possible financial losses, says Carlos Eduardo Polizio, coordinator of the Aeronautical Insurance subcommittee of the National General Insurance Federation (FenSeg). “This provides a more favorable environment for the development of long-term space projects in Brazil, with more confidence from investors,” he explains.
Tags: Satellite insurance raises R255 million Brazil points CNseg
