Sciemus is delighted to announce a partnership with Liberty Syndicates in the creation of a new offering for the satellite insurance market.
Liberty Syndicates has formed a new consortium, called LibSat, on the strength of SpaceRAT which has demonstrated the potential to create substantial savings for some satellite operators. Andre Finn, CEO and co-founder of Sciemus Ltd said: "We are delighted that this new partnership with Liberty could reduce premiums by as much as $10m per year for some operators."
LibSat and its reinsurers will provide initial capacity of up to $250 million rising to $400m over the next few years to cover operators of communications satellites. At this level LibSat as a single entity has the capability to underwrite the entirety of even the largest satellite fleet. This informed capacity combined with technical analysis, in place of experience based analysis, provides satellite operators with an alternative to the subscription market.
Sean Dalton, CEO of Liberty, said: "This represents the largest single source of new capacity made to the industry, which hitherto has suffered from an inability to differentiate between good and bad operators. The model will enable differentiation between good and bad risk within the satellite sector and price to reflect the risk. Operators will be able to see the benefit in terms of significant cost savings and certainty."
Benefits
Operators with superior control over key processes such as satellite procurement, deployment, and operation have effectively been subsidising their competitors' premiums because of underwriters' difficulty in differentiating the lower risks from the rest of the market. Now significant savings will be available because SpaceRAT allows the underwriters at LibSat to price their policies to reflect the technical risk of satellite failure.
In addition to providing technical risk analysis through SpaceRAT, Sciemus is also addressing the technical quality of insurance contracts with the aim of providing an improved degree of certainty.
Sciemus partners with select industry participants who share its enthusiasm for reduced volatility, risk based pricing, improved policy wordings, less litigation and improved customer service.
