The rapid expansion of the global space industry has intensified the need for robust satellite insurance frameworks that address the complexities of modern missions. As commercial and governmental actors deploy a wider range of assets into orbit, insurance policies are expected to manage not only launch-related failures but also on-orbit anomalies, third-party liabilities, and decommissioning responsibilities. In parallel, countries like the UAE are building domestic regulatory frameworks to formalise operator accountability while promoting investment. New business models and shared infrastructure have increased ambiguity around who holds responsibility for damages and how those risks are calculated. In this article, we will examine whether current insurance structures meet the demands of today’s satellite missions and regulatory settings, particularly in the UAE.

Categories And UAE Regulatory Requirements

Space insurance includes four main types: launch, in-orbit, third-party liability, and post-mission disposal. Launch insurance covers the satellite during its journey to orbit, while in-orbit insurance handles faults that may occur once the satellite is operational. Third-party liability protects against physical or financial harm caused by a satellite to other spacecraft, infrastructure, or individuals. Post-mission disposal insurance ensures compliance with debris mitigation protocols. In the UAE, Federal Law No. 12 of 2019 mandates insurance coverage for licensed operators, including minimum thresholds for third-party liability and requirements around indemnification.

Legacy Risk Models And New Mission Profiles

Many traditional policies still follow assumptions built around singular, high-value missions. This creates a poor fit when applied to high-density LEO constellations or rideshare launches, where attribution of fault is less clear-cut. Operators sharing a launch vehicle or relying on distributed networks of satellites must contend with more fragmented accountability. Modular payloads and short satellite lifecycles further challenge pricing models originally developed for long-term GEO missions. As a result, current space launch risk models may fail to reflect the operational reality faced by new-generation operators.

Reporting Inconsistencies And Data Shortfalls

Insurers rely on access to clear and consistent failure data to assess risk. However, many operators do not publish post-incident analyses or disclose technical issues in full. This reduces the overall pool of reliable data and makes it harder to benchmark risk across similar mission types. For countries with new or growing space sectors, such as the UAE, this limitation creates additional uncertainty for both local insurers and international reinsurers. The absence of coordinated transparency standards across jurisdictions contributes to this problem.

Structural Imbalance In Available Insurance Products

Most available coverage options are still geared toward traditional operators and missions involving high-budget GEO satellites. In contrast, small satellite constellations, hosted payloads, and rapid deployment cycles are underserved by current offerings. The design of many policies does not align with the scale, structure, or modular nature of today’s commercial space ventures. To support local development, regional insurers and sovereign risk platforms in the UAE may need to design more flexible products. This shift would encourage innovation without leaving operators exposed to gaps in coverage.

Building Insurance Strategies Around Mission Reality

Aligning insurance policies with real mission profiles, rather than legacy assumptions, is key to building a sustainable space ecosystem. Collaboration between regulators, insurers, and operators can improve risk modelling accuracy and expand the range of viable coverage. Adjusting space launch risk models to reflect multi-satellite launches, networked assets, and shorter mission durations will be central to this process. As new players enter the market and the UAE consolidates its role as a regional space hub, updated insurance mechanisms will be critical.

SATExpo 2025 offers a venue to further these discussions and examine how satellite insurance can support evolving commercial and policy priorities.

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