Unknown risks in unprecedented challenges
The space industry is growing rapidly worldwide, and the Japanese government aims to double the current market size of around 1.2 trillion yen by the early 2030s. Large companies from other sectors not inherently involved in aerospace and start-ups are entering the space industry, with their activities expanding into satellite operations, data utilization, tourism, and transportation services. As the uses of space diversify, potential risks arise simultaneously. Traditionally, space insurance covers risks related to the manufacturing, launch, and operation of satellites for established space operators, but it is evolving to provide more comprehensive coverage that corresponds to the new era of this field. To ensure both established and new space operators can engage in space business confidently, there is a growing need for insurance that addresses a broader range of risks.
Sompo Japan has been providing space insurance since the 1970s, but now we aim to contribute to the expanding space industry in Japan by offering products and services that address these emerging risks. We are actively researching international cases, particularly in leading countries like the U.S. and Europe, and collaborating with foreign insurance markets to identify future risks and further build expertise in risk management that will support the continued development of the space business.
Dual support for business challenges
For companies venturing into space, insurance needs differ significantly between the planning and development phases and the launch and operation phases. We support the success and growth of companies already in the space business, as well as those entering the field for the first time, also from a risk management perspective. Specifically, we offer Space Business Support Services, a risk consulting service, and Space Insurance, which protects clients against potential losses during the launch and operation phases. Since companies’ needs vary depending on where they are on their journey to entering the space business, we provide individually tailored support through both services.
About Space Business Support Service
Targeted mainly towards start-ups and large non-aerospace companies in Japan, our risk consulting service is designed to examine foreseeable risks during the planning and development stages. My colleague Tomohiro Kawamura explores “The challenges start-ups encounter in the space industry” in his article.
Tailor-made space insurance built on trust
Space insurance, designed to address the unique risks involved in venturing into space, is customized for each business. In this process, it is crucial to have a precise understanding of the technology, and we believe that building a relationship of trust through dialogue with business operators is key. However, the space industry remains highly specialized, and many businesses are hesitant to enter the field. Therefore, creating an environment where experienced space players and new entrants can easily interact is essential. By building relationships based on trust with each company and establishing a broad network in the market, Sompo Japan aims to support the growth of space industry in Japan.
