Taking on the Challenge of Space

Tokio Marine Group started handling space insurance in the 1970s, after taking part in providing launch insurance for a communications satellite developed by the National Space Development Agency of Japan (NASDA, now the Japan Aerospace Exploration Agency (JAXA)).

Currently, there are only about 30 insurance companies worldwide that can underwrite space insurance. Among these, TMNF also receives more than 200 space insurance offers related to satellites from space insurance brokers in London every year.

There are two main types of insurance: insurance against the risk of damage to property, such as damage to rockets and satellites, and liability insurance against damage to third parties caused by the launch of a rocket or satellite. Even within these broad categories, insurance products are divided further according to the content of coverage.

The main work of the Aviation & Space Insurance Team, which I and Mr. Yoshii belong to, is domestic and international space insurance underwriting and consulting for domestic space-related enterprises.

They are determined case by case according to the structure and specifications of the rocket or satellite. For example, with broadcasting satellites, broadcasters purchase the satellite from the manufacturer and then contract with a rocket launch operator to put the satellite into orbit. The insurance premiums will differ depending on which manufacturer's satellite is launched by which rocket.

In the business of utilizing satellites, the cost structure is such that the largest costs are manufacturing the satellite and the rocket, and then of launch insurance. Therefore, the evaluation in the international space insurance market directly affects the project cost. Rocket launch operators and satellite manufacturers hold technical briefings for the insurance industry and disclose detailed information to obtain an appropriate evaluation. Products that are highly evaluated are more likely to be adopted by operators of communications and broadcasting services when they purchase satellites. When selecting hardware, it is common for space industry operators to access the space insurance industry for advice.

TMNF has built up underwriting know-how over more than 30 years of space insurance underwriting in the international market. In recent years, many startups have emerged in the space industry. Our strength lies in our ability to provide specific consulting services to businesses based on the knowledge we have accumulated. For example, we offer advice along the lines of: "You should select parts from this perspective,” “You should design hardware in this way," and "These are the key criteria for selecting rockets."

Thus far, the bottleneck in the space industry has been the cost of transporting satellites needed for rocket launches. Historically, the development of core rockets in major countries has been led by the government. But in recent years, the entry of private companies such as SpaceX into the rocket launching business has dramatically reduced transportation costs. Additionally, the emergence of new ways of using satellites is a factor. What is growing now is the technology of a constellation that encompasses the entire planet by placing many satellites in low orbit.

The number of low-orbit satellites is increasing. I think that the number of satellites will continue to increase, including communication satellites used for the Internet, synthetic aperture radar (SAR) satellites that observe the Earth's surface by bouncing microwaves off it, and optical satellites that photograph the Earth's surface using optical sensors. Such technologies are expected to play a pivotal role in the field of security, as well as of course have commercial applications.

The range of businesses involved in the space industry is expanding, including startups, companies from other industries, and local governments. The domains we need to respond to are thus becoming more diverse. It is necessary to work within a more expansive framework to address these trends accurately. We also aim to develop new products and services that utilize satellite data.

I am involved as a member of the Digital Strategy Department at TMHD, where I work on developing new businesses and solutions outside the realm of insurance. Our team is cross-functional and centered around three key departments: the Digital Strategy Department of TMHD, the Aerospace & Travel Industry Department, and the Market Strategy Department of TMNF, as well as the Claims Services Department, Product Development Department and other interested members who have joined voluntarily. Together, we aim to contribute to the growth and development of the space industry.

There is a growing number of local governments and companies working to revitalize their communities by attracting space-related enterprises and constructing spaceports. These include Taiki Town in Hokkaido, Minamisoma City in Fukushima Prefecture, Kushimoto Town in Wakayama Prefecture, and Oita Prefecture. TMNF's branches and the space project team collaborate to provide advice and other support to help build momentum for the regional space industry.

I believe there is potential for using space technology in the domain of disaster prevention and mitigation, which Tokio Marine Group as a whole is focusing on to minimize the damage caused by natural disasters. Satellite data is already being used. However, in the future, as the number of satellites increases and we enter an era where we can scan the entire globe, I think that the use of satellite data by insurance companies will also expand, and I would like to develop services and solutions that apply satellite data. Also, although the word "space" intuitively sounds complicated., Through our owned media SpaceMate (Japanese Only), we would like to provide easy-to-understand information, so that people in society can feel more familiar with space.

Tokio Marine Group has adopted "Inspiring Confidence. Accelerating Progress." as its brand message. In the space industry, I would like to accelerate the progress of business helping to create new space-related infrastructure. To that end, I want to stay on top of new technologies, learn from experts like Mr. Yoshii, and provide support that will enhance the competitiveness of businesses.

In 2023, the Cabinet approved the establishment of the Space Strategy Fund, and up to 1 trillion yen in government funding is scheduled to be invested in the space industry over the next 10 years. I want to support important space-related projects and work to make Japan's space industry globally competitive. I believe that doing so will lead to new solutions for Japan's major social issues.