10 April 2026
Space insurance market update Q1 2026
Market capacity for 2026 showed an encouraging increase of approximately USD100m year on year, based on capital provider and reinsurer commitments secured just ahead of the SpainSat NG-2 total loss that came as an unwelcome surprise at the end of December.
Our Q4 2025 update noted that the 2025 year of account was on track to deliver circa USD500m of net underwriting profit to insurers, whilst cautioning the significant risk posed by several heavily insured satellites still in their IOT phase, among them SpainSat NG-2. On the 26 of December 2025 this came abruptly into focus when underwriters received a notice of potential loss for SpainSat NG-2, insured for over USD400m.
With a total loss now apparently confirmed, this shifts the 2025 space insurance market underwriting loss ratio from circa 15% to circa 75%, a firm reminder of the inherent volatility of the space insurance class. Nevertheless, with 2025 still on track to deliver a positive result, the impact on premium rates has been muted. Happily for buyers, premium rate reductions remain available on prime in-orbit business and launch pricing continues to improve.
Although SpainSat NG2 is a significant loss to the market, it came too late in the year to impact capital provider commitments and reinsurance renewals for 2026. Consequently, we have witnessed increased support for the overall space insurance class overall, with over 15% more theoretical capacity available compared to this time last year, reflecting the renewed sense of insurer confidence that had been growing through the latter half of 2025.
Capacity is based on information provided and our market knowledge. The maximum theoretical capacity is very rarely deployed. Small Satellite Capacity is heavily influenced by the risk profile and Sum Insured. Capacity available for each risk should be considered on a case-by-case basis.
While insurers' theoretical capacity serves as a useful indicator of market trends, analysing the amount of ‘competitive capacity’ (where underwriters will readily vie to obtain their desired participation) can be more insightful. Competitive capacity remains around the USD300m mark, with new technology, unique or challenging risks sitting significantly below this level.
Looking forward, 2026 market premium in is expected to significantly contract from 2025, primarily because of the relatively low number of large GEO satellites slated for launch and a continuing lack of buyer appetite for insuring satellite constellations. This will no doubt heighten the volatility of an already capricious class of business, with underwriters having both to manage their exposure to high value risks, while still being attracted to the significant income these programmes generate.
Competition for heritage In-orbit business is intensifying. This segment has performed strongly in recent years and several large insurers are looking to grow this part of their portfolio to obtain a larger spread of risk and grow immediately available premium income. As there is already significant competition for such programmes, we expect to see premium rate decreases to expand as the year progresses. We hope that this will enable those buyers who have reduced their In-orbit insurance buying appetite over the last few years, to revisit their approach.
With lower premium volumes and increasing competition anticipated, Q4 2026 is gearing up to be a highly influential window for renewals and an opportunity for buyers to seek pricing options for future insurance programmes, fuelled by pressure on insurers to hit income targets.
Gallagher is here to help
Gallagher is continuing to plan ahead of the changing environment and broadening client base. Our team continues focus both on the core products and services we offer to our heritage clients and on developing complementary risk management solutions geared directly towards small to mid-sized and emerging space companies. In this arena, our proposition extends beyond traditional satellite risks to a full end-to-end risk management and risk transfer approach, supporting new space clients in managing their exposures and effecting insurance programmes that underpin their growth objectives.
Our mission is to provide operators, manufacturers and space companies with a robust suite of risk management solutions that create value and provide scalability. Please do not hesitate to reach out to learn more.
World Space Sustainability Association (WSSA)
Gallagher is very excited to announce that we have joined the World Space Sustainability Association. We are committed to supporting WSSA efforts to promote debate, foster collective decision-making and define workable solutions to ensure that the space ecosystem remains available for generations to come.
Conference Update
We greatly value the opportunity to attend industry events, where we connect with clients, partners, and colleagues. Our strong presence at these events enables us to stay up to date with the latest industry trends, while facilitating high quality face-to-face exchanges.
Denver Space Summit
Our team joined industry leaders as the region’s space economy continues to accelerate. Key topics included capital formation, infrastructure, in-orbit services, launch cadence, and the evolution of the commercial market. The energy and collaboration throughout the summit reinforced that 2026 is shaping up to be a defining year for commercial space.
Space Com in London
The conference brought together experts from various fields, including government representatives, lawyers, investors, insurers, and space companies ranging from startups to established aerospace leaders. The key takeaway was clear: for the UK and Europe, space is transitioning from an emerging and innovative sector to a strategic industry that is critical to economic competitiveness, defence capabilities, and technological sovereignty.
SatShow 2026 in Washington DC
SatShow is one of the biggest events in the industry calendar, and we had the pleasure of catching up with many clients and future clients throughout the week. In particular, Gallagher’s ‘SatShow 2026 kick-off’ client event was extremely well attended and we hope to make this a regular fixture.
The overall feedback we have received highlights growing interest in the expansion and reach of Gallagher’s Global Space Practice across the space industry. Our client-focused approach continues to resonate with the market, attracting an increasing number of exciting new clients.
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Introducing Jacinth
Gallagher’s new and improved proprietary aviation insurance platform centralises insurance programme information. It integrates documentation, data and analytics into one streamlined system, giving clients a modern, efficient way to manage every aspect of their insurance arrangements.
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