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A notion out of this world: space travel insurance takes off

Posted On: Sep. 18, 2018 11:33 AM CST

A notion out of this world: space travel insurance takes off

The argument goes, drivers need insurance to drive, and space companies need it before they venture into outer space.

As CNN Money reported this month, “the pool of customers is tiny, and the risk is, well, astronomical.” The space-insurance industry collected $715 million in premiums — to cover such mishaps as satellite collisions and other calamities — and paid out $636 million in claims in 2017, according to an insurance industry expert talking to CNN about the industry segment’s “slim profit.”

But a profitable business, no doubt.

“A small group of insurance underwriters around the world have racked up expertise that helps the space industry assess risk and write policies,” the network reported, adding that business is expected to take off.

The world is entering a “new era of space flight” as private companies are driving down costs to launch vehicles and satellites, thus making space travel more common, according to the report.