Bermuda-based re/insurer Ironshore's Aviation division has entered a Treaty Reinsurance programme with the Starr Group to provide protection against commercial satellite risk.

The global space insurance programme provides coverages for satellite launch insurance and in-orbit Insurance underwritten through Starr Space.

Ironshore Aviation will assume 10 percent of the global facility underwritten on a quota share basis with other leading insurance carriers.

The news comes just a week after the Ministry of Energy, Telecommunications and E-Commerce hosted talks between satellite operators and re/insurers on the Island to encourage business between them.

In Ironshore's programme, launch Insurance for commercial satellites is underwritten in the event of an unsuccessful launch of the spacecraft on a per launch basis up to a predetermined insured value that can exceed $200 million per insured.

The Starr facility insures up to $30 million on a single launch and $35 million on a dual satellite launch with Ironshore providing 10 percent of the coverage.

In-orbit Insurance protects against operational risk throughout the design life of the satellite with annual policies that can extend to 12 years, of which seven years is the typical insurance coverage period.

"Space insurance coverage is a highly specialised field, requiring disciplined technical underwriting expertise," said Gerald Frick who heads Ironshore Aviation.

"Satellite owners recognise that the launch and in-orbit operations are subject to catastrophic losses, and seek insurance protection to maximise the operational life of the spacecraft."

Terms and conditions of the insurance policy are structured specifically to address the design details and technicalities of each launch vehicle and are arranged a year in advance of the scheduled launch date.

Insurance protection is for satellite replacement coverage only with performance deductibles incorporated into the policy language for determining spacecraft value and establishing premium rates for the launch event or operational time period.