Inside the new space race

Over the past decade, the space sector has steadily evolved from a government-led pursuit into a highly competitive commercial arena, where private companies now drive launch schedules, develop mega-constellations and push innovation at a pace that often outstrips regulatory frameworks.

As Hive Underwriters enters the space insurance market, it does so at a moment when the industry is not only expanding but fundamentally redefining the nature of risk.

Today’s space environment is shaped by a new generation of operators pursuing unprecedented scale and innovation. Companies like SpaceX, Blue Origin and Rocket Lab have accelerated launch cadence and lowered access costs, enabling thousands of satellites to be deployed into low-Earth orbit. Starlink alone has grown into the world’s largest satellite constellation in just a few years and similar projects are on the horizon.

Opportunities and risks

This proliferation of hardware in orbit brings extraordinary opportunities, such as improved global connectivity, climate monitoring, navigation and scientific insight. However, it simultaneously creates new exposures insurers and operators must navigate with a fresh perspective.

One of the most pressing challenges is congestion in low-Earth orbit. The density of satellites and debris is increasing, elevating the likelihood of collisions and creating complex tracking and manoeuvring demands for operators.

Governments continue to view space capabilities as economically and strategically essential, while private investment fuels an ecosystem of launch providers, satellite manufacturers and data-driven service companies

For underwriters, this requires an even deeper understanding of spacecraft resilience, propulsion capabilities, redundancy and debris-avoidance protocols. The insurance market needs to evolve rapidly to assess how these factors influence risk profiles and to help clients design safer, more resilient mission architectures.

Commercial space tourism introduces an entirely new frontier of exposure. Human-rated systems, orbital hotels and sub-orbital passenger flights shift the conversation from payload reliability to passenger safety and liability, while regulatory frameworks are still being developed.

Space stations

Alongside tourism, commercial space stations are emerging as a critical growth area. Nasa and other agencies are actively encouraging private operators to develop platforms that could replace the International Space Station after its planned retirement in 2030.

These stations will be massive, high-value assets, potentially stretching or exceeding market capacity, and will significantly increase the number of private astronauts in orbit. They will also drive demand for supporting infrastructure, including manned and cargo flights, creating a whole new ecosystem of orbital logistics and operations.

Despite these challenges, the momentum behind space activity is unmistakable. Governments continue to view space capabilities as economically and strategically essential, while private investment fuels an ecosystem of launch providers, satellite manufacturers and data-driven service companies. Insurance plays a crucial enabling role, not just in transferring risk but also in providing expertise, incentivising safer practices and supporting sustainable operations in orbit.

The coming years will see commercial activity diversify and scale, from growing satellite constellations to human spaceflight and private orbital infrastructure. While timelines are always uncertain in this sector, insurers will need to engage deeply with technical developments, evolving operational models and emerging regulatory requirements.

Space has very much become a commercially vibrant and rapidly evolving domain. As activity accelerates, so too must our ability to understand and insure it.

Jack Kenneally is space class underwriter at Hive Underwriters