Posts Tagged ‘space’



November 12th, 2014

Cyber-attacks and Terrorism Revealed as Top Emerging Risks for 2015, According to Annual Guy Carpenter Survey

Posted at 5:30 AM ET

Cyber-attacks and terrorism are ranked among the top emerging risks concerning the (re)insurance industry in the year ahead, according to a survey released today by Guy Carpenter. According to the findings, new products, expansion into new geographic markets and access to new distribution channels will be the primary drivers of profitable growth in 2015. 

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May 20th, 2014

Review of Space Risks and Insurance Solutions

Posted at 1:00 AM ET

Here we review recent GC Capital Ideas stories on space risk and related insurance solutions. 

Recent Sun Flare Event Is a Reminder of Solar Weather Hazards: On February 24, 2014 the sun once again provided a reminder of the potential hazards of solar weather events. A large solar flare was reported by the National Aeronautics and Space Administration (NASA) measuring at X4.9 (or according to the National Weather Service’s Space Prediction Center, an R3 (strong) Solar Flare Radio Blackout) that could cause severe disruption to satellites and technology on Earth.

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Space (Re)insurance Solutions: Weather Risk: Space weather risks are difficult to quantify due to the lack of understanding and clarity about the likely duration and consequences of extreme events. However, it is clear the interconnected global economy that exists today is vulnerable to the risks posed by space weather. Indeed, extreme solar weather events have the potential to create systemic risk by triggering cascading failures across industries and regions.

Read the article>> 

 

Space (Re)insurance Solutions: Debris Risk: Risks emanating from space pose a serious and real threat to the (re)insurance sector. Space debris and satellite collisions have the potential to cause losses in the millions or even billions of dollars, while extreme space weather has the potential to cause systemic failures across the globe. Although both risks are difficult to quantify given the uncertainty involved, (re)insurers have a responsibility to promote risk mitigating measures as the potential costs involved are considerable.

Read the article>> 

 

Solar Weather Activity: Solar weather is a space-related risk that has the potential to cause huge disruption to infrastructure and businesses around the world. Geomagnetic storm activity is not a new development but technological advancements and an increasingly interconnected global economy have resulted in increased vulnerability. Although extreme solar storms are relatively rare, there have been several notable recent events that have had a damaging impact on Earth. More are certain to occur in the future.

Read the article>> 

 

Space Debris Risk: Part I, Orbital Regions: The most serious threat to high-value satellites and space infrastructures in the Earth’s orbit today is the risk of collision with other satellites or space debris. As more satellites are sent into the Earth’s orbit to provide services and technology we now take for granted, including global communications and broadcasting, air traffic control, weather forecasting and disaster management, the area is becoming increasingly cluttered with satellites (operational and defunct) and other fragments, enhancing the risk of collision. Although deorbiting strategies are in place for some modern satellites, tens of thousands of objects still circulate the planet at extremely high speeds.

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Space Debris Risk: Part II, Collision Risk: Space debris poses a serious risk to operational satellites, particularly in the low earth orbit (LEO) and geosynchronous orbit (GEO). Indeed, debris amounts are increasing as objects continue to collide with one another, producing more fragments. According to the U.S. Strategic Command’s Space Surveillance Network, more than 20,000 objects above ten centimeters in size are currently orbiting Earth. Of these, only some 1,000 are active satellites. For items measuring between one and ten centimeters, around 500,000 particles are thought to be orbiting Earth. Estimates suggest tens of millions of other particles smaller than one centimeter are circulating the planet. All this material is traveling at several kilometers per second, sufficient velocity to cause significant damage to operational satellites.

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March 27th, 2014

Recent Sun Flare Event Is a Reminder of Solar Weather Hazards

Posted at 1:00 AM ET

On Monday, February 24, 2014, the sun once again provided a reminder of the potential hazards of solar weather events. A large solar flare was reported by the National Aeronautics and Space Administration (NASA) measuring at X4.9 (1) (or according to the National Weather Service’s Space Prediction Center, an R3 (strong) Solar Flare Radio Blackout) (2) that could cause severe disruption to satellites and technology on Earth.

Continue reading…

December 10th, 2013

Emerging Risks: Managing the Unknown, Part I

Posted at 1:00 AM ET

Having examined the three emerging risks of cyber, climate change and space in detail, it is clear they present serious threats to businesses and (re)insurers. Not only will the fallout from these risks result in losses we can currently anticipate and predict (such as increased property damage and liability vulnerability), but they also have the potential to trigger costly secondary impacts such as a breakdown in supply chains, reputational damage, disrupted power supplies and possibly others that are more difficult to foresee.

Continue reading…

December 9th, 2013

Space (Re)insurance Solutions: Weather Risk

Posted at 1:00 AM ET

Space weather risks are difficult to quantify due to the lack of understanding and clarity about the likely duration and consequences of extreme events. However, it is clear the interconnected global economy that exists today is vulnerable to the risks posed by space weather. Indeed, extreme solar weather events have the potential to create systemic risk by triggering cascading failures across industries and regions.

Continue reading…

December 5th, 2013

Space (Re)insurance Solutions: Debris Risk

Posted at 1:00 AM ET

Risks emanating from space pose a serious and real threat to the (re)insurance sector. Space debris and satellite collisions have the potential to cause losses in the millions or even billions of dollars, while extreme space weather has the potential to cause systemic failures across the globe. Although both risks are difficult to quantify given the uncertainty involved, (re)insurers have a responsibility to promote risk mitigating measures as the potential costs involved are considerable.

Continue reading…

December 4th, 2013

Extreme Solar Events: Exposed Areas and Industries

Posted at 1:00 AM ET

As the majority of historical events illustrate, higher geomagnetic latitude countries such as the United States, Canada and Nordic countries are most at risk of suffering the effects of extreme solar storms. (1)  However, lower geomagnetic latitude regions such as the Caribbean and more central and southern parts of Europe could also be affected during extreme events. Other factors such as geology, proximity to the coast and location and fragility of power grid infrastructure help determine the risk posed by solar activity.

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December 3rd, 2013

Solar Weather: Historical Events

Posted at 1:00 AM ET

The severity of space weather varies as the Sun follows a consistent 11-year cycle of changing solar activity. The next cycle peak is expected between 2013 and 2015. Extreme geomagnetic events are nevertheless relatively rare, with return period estimates ranging from between 100 and 200 years to up to 500 years. (1)  Less severe events are more frequent and often occur on an annual basis. The cumulative impact of milder disturbances should not be underestimated, however, particularly as our dependency on power increases and power infrastructure in some countries fatigues with age.

Continue reading…

November 27th, 2013

Solar Weather Activity

Posted at 1:00 AM ET

Solar weather is a space-related risk that has the potential to cause huge disruption to infrastructure and businesses around the world. Geomagnetic storm activity is not a new development but technological advancements and an increasingly interconnected global economy have resulted in increased vulnerability. Although extreme solar storms are relatively rare, there have been several notable recent events that have had a damaging impact on Earth. More are certain to occur in the future. Continue reading…