QinetiQ has launched a risk analysis tool designed to allow insurers to evaluate the risks associated with geostationary communication satellites.
The science and technology solutions company developed the tool, called Space Rat, in partnership with financial modelling and business solutions provider Sciemus.
It said Space Rat was a satellite risk calculation engine linked to an advanced financial evaluation system and supported by a comprehensive dataset of satellite engineering data.
QinetiQ said that over the past seven years the space insurance industry has paid out $4.4bn in losses and collected only $4bn in premiums, reinforcing the need for accurate risk assessments in calculating premiums.
It said Sciemus is currently in negotiations with a number of brokers and underwriters concerning Space Rat.
The company will initially target the $1bn a year premium satellite insurance sector, and has finalised funding of £1.3m from QinetiQ and private investors.
QinetiQ's Space Business Centre head, Dr Mike Jackson, said: “We are excited to work with Sciemus, applying our expertise to the task of quantifying the insurance risk, putting rigour into the process of premium calculation and removing the guesswork.”
Sciemus chief executive Andre Finn, said: “The application of our combined strengths has the potential to revolutionise the way risk is assessed in the insurance industry.
“As our space system is nearing completion, we have begun looking at other difficult areas such as terrorism, aviation, flood and marine.
“We plan to develop 20 models over the next three years where we will utilise unparalleled expertise to create world-class risk solutions.”
