that a few years ago that would have launched rates skyward and sent capacity fleeing the market, according to London market specialist broker Space Risks International (SRI).

Lloyd's List reported last week that more satellites and higher sums insured as well as more appetite for risk among insurers has resulted in sufficient premium volume what, in the past, would have been catastrophic losses.

By August, market claims exceeded $500 million. Previously, this amount would have equaled a crisis.

Much of the increased capacity is linked to companies like Bermuda-based ACE Ltd. increasing market commitment.

ACE has maximum capacity of $25 million but brokers can negotiate lines in excess of $50 million. ACE's satellite underwriter could not be reached for comment yesterday afternoon.

AIG recently said it has an initial capacity of $10 million for the satellite market with more likely in future. USAIG recently upped its single launch capacity to $52 million from $45 million. France's AGF/AFA and La Reunion Spatiale as well as Italy's Generali also increased coverages.

SRI, in its latest satellite insurance market review, said capacity this year reached $669 million compared to $555 million last year and $485 million in 1994.

SRI also said that Chinese Long March rocket launches -- satellites on this rocket have incurred claims of $480 million over the past 18 months -- are a concern.