Government takes first steps towards spacecraft insurance

The government is investigating the best way to regulate spacecraft insurance.

The move follows the passing of the Space Industry Act on 15 March, paving the way for businesses to send satellites and rockets into space from the UK.

The UK Space Agency and Department for Transport now want industry evidence about liabilities and insurance to open up this market, and potentially help facilitate commercial spaceflight in the future. The market is expected to be worth £25bn over the next 20 years.

Graham Turnock, the space agency’s chief executive, said: “We are ensuring the regulatory framework set out in the Space Industry Act leads to a safe, responsible and attractive environment for small-satellite launch and sub-orbital flight. This is a chance for interested parties to have their say on the important issues of liabilities, insurance and charging.”

The government have stated that access to space is part of their industrial strategy. The Department for Business, Energy and Industrial Strategy and the Civil Aviation Authority are all involved in finding a way to insure spacecrafts, ahead of issuing spaceport licenses, and want to determine how the risks can be insured.

Transport Minister Jo Johnson said: “Access to space is the final piece of the puzzle for the UK space sector and forms part of the government’s Industrial Strategy – helping to drive growth across the country and unlocking hundreds of highly-skilled jobs in our regions.

“The Space Industry Bill gives companies the ability to launch satellites from UK soil, putting us at the forefront of the new space race, and helping us to compete as the destination of choice for satellite companies worldwide.”