Lloyd’s of London has launched a new space insurance policy for the emerging private spaceflight industry.

The product is designed to cater to the distinct needs of a rapidly growing new space sector, which, according to Lloyd’s, could be the driving force behind a tripling in size of the global space market by 2040.

The solution, called Llift space, is only available in the Lloyd’s market and allows customers to cover their assets from the pre-launch phase, including transit and placement on the launch vehicle, through to the launch phase and in-orbit operation.

It is designed for satellites that weigh less than 300kg and is targeted at the NewSpace sector.

The product is backed by a group of 18 syndicates, led by Brit and Hiscox MGA, with a $25mn capacity per risk.

NewSpace is characterised by lower cost, easier routes to space, which has opened up the sector to private enterprise and  innovative start-ups increasing the need for space insurance.

In a recent Lloyd’s report, they believe the global space market could increase value from $300bn today to $1tr by 2040, driven by NewSpace companies entering the sector.

Trevor Maynard, Lloyd’s head of innovation, said: “New aerospace companies and ventures are emerging all the time. They are looking to develop faster and cheaper access to space and spaceflight. As they do so, they want access to easily scalable insurance that fits their needs and can be arranged quickly to support technological development and business growth. Our new space consortium allows Lloyd’s to do this better than ever. The breadth and depth of space insurance knowledge among Lloyd’s underwriters and brokers means that Lloyd’s is the number one choice for both traditional and NewSpace insurance.”

Gary Brice, head of marine and Space for Lloyd’s managing agent Brit Global Specialty, which manages Llift Space with Hiscox, added: “Llift Space takes away the complexity of traditional space insurance and allows customers, in particular those in the NewSpace sector, to insure all the phases of their project with one policy.”

Pascal Lecointe, head of space for Hiscox, said: “Having two leading markets in the sector come together in a way that’s never been done before to create a genuinely innovative Lloyd’s product for this dynamic new industry, highlights the place Lloyd’s retains at the forefront of the global space insurance market.”