The introduction of mandatory insurance of space launches, which Russian state space corporation Roscosmos may initiate, will be beneficial both for the agency and for insurance companies, Pavel Shutov, the president of the Russian Association of Aviation and Space Insurance, told Sputnik.
MOSCOW (Pakistan Point News / Sputnik - 09th February, 2019) The introduction of mandatory insurance of space launches, which Russian state space corporation Roscosmos may initiate, will be beneficial both for the agency and for insurance companies, Pavel Shutov, the president of the Russian Association of Aviation and Space Insurance, told Sputnik.
Roscosmos chief Dmitry Rogozin said on Monday that the agency could initiate changes to the Russian legislation that would make insurance of all the state-funded space launches mandatory. Roscomos insures most of its launches.
"What will it give to Roscosmos? Situations when space-related risks are not insured will no longer emerge. This will enable more precise expenditure budget planning. This will protect [the company] from unplanned expenses. This will define funding source and procedure. Basic insurance conditions will be clear," Shutov said.
He added that the move could boost the stability of the space insurance market.
"This will strengthen financial discipline ... and increase insurers' responsibility," Shutov said.
He praised insurance as an efficient measure of space sector financial protection.
"Years-long experience confirms this. The insurance market has made up for a large amount of losses. If the insurance had not been in place, enterprises would have carried the burden of financial losses," Shutov added.
He reaffirmed the belief that compulsory insurance would boost responsibility, order and discipline in the space insurance sphere.
