Risk and Insurance in the New Space Economy

Abstract This chapter introduces risk management standards in the context of NewSpace ventures, emphasizing the pivotal role of insurance in mitigating risks for successful and sustainable development of the space sector. Utilizing qualitative analysis, the chapter delves into risk concepts, types, and factors in the space sector, highlighting risk management throughout the space project lifecycle. The authors stress the universal importance of risk management tools in identifying, assessing, and mitigating potential risks, extending beyond internal processes to involve licensing authorities and insurers. The chapter also addresses the problematics of insurance for emerging space activities, such as in-orbit servicing, suborbital flights, and space tourism, underscoring their growing importance in shaping responsible behavior and contributing to sustainable space exploration. The chapter explores space insurance, its role, challenges, supply, and classifications throughout the space value chain. It details operational principles, underwriting processes, and the growing significance of compulsory space insurance in national space legislation.