Indian space mission seeks reinsurance support
In its Gaganyaan mission, which will feature two unmanned and one manned flight, the Indian Space Research Organisation (ISRO) plans to send three astronauts to space by 2021, but experts insist that providing cover for the astronauts will depend on reinsurance support
Traditionally, underwriters will assess a risk based on numerous factors. "There are differences in the way a risk is perceived,” explained G.N. Agarwal, former President of the Institute of Actuaries of India and former Executive Director (actuarial) of LIC. “The base of astronauts is small. Not many people are seeking cover. The premium depends on the probability and unless many people are there who go to space and come back safely, the probability of safe return may not be known and hence the chargeable premium."
Due to these many unknown factors, Mr R Raghavan, former General Manager of GIC Re and the Founder and CEO of the Insurance Information Bureau, explains that in order to arrive at the premium, an insurer will need to evaluate various aspects such as the rocket’s success rate, the space agency’s success rate and risk management efficiencies.
Some industry experts have also suggested that the value of insurance could be arrived at by calculating the person’s earnings up to their retirement, and discounting to arrive at the agreed present value.
Alternatively, Agarwal suggests that insurers may be able to benefit from the brand equity gained by extending their insurance cover to these astronauts. And brand expert and Founder of Harish Bijoor Consults Inc Harish Bijoor agreed: "The brand equity mileage gained is going to be far bigger than the cost. Costs need to be appropriated a larger scientific community.”
Though the mission is set to be a major advancement for India’s space programme, at this early stage in the game, there is still much to be considered from an insurance point of view. Space travel brings with it unprecedented levels of potential risk, so it is no surprise that the industry would want to be cautious when working out its approach.