This is part of a series on the global impact of SpaceX’s historic IPO, tracing how mainland Chinese investors’ strategies, the Hong Kong market and wider capital flows are being reshaped by Elon Musk’s trillion-dollar rocket gamble.
In 2016, a SpaceX rocket carrying a satellite blew up during a test, destroying on-board equipment and surrounding facilities worth millions of US dollars.
Fortunately, the satellite operator, Israel’s Space Communications, had an insurance policy worth almost US$300 million on the cargo, largely minimising the loss.
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As the commercial space sector has flourished over the past decade – culminating in the blockbuster initial public offering of SpaceX on Friday – the space-insurance market has matured alongside it.
Once a highly specialised niche, the sector now serves as a critical financial backstop protecting satellite operators, manufacturers and space-flight providers against catastrophic loss.
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In China, the space-insurance industry has shifted into high gear this year, driven by a wave of domestic firms racing to catch up with SpaceX in research, manufacturing and launch capabilities.