cheryl
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Why on Earth would a company offer insurance for space travel? - Fox Carolina
Drivers need insurance before they get on the road. And space companies need it before they hurtle metal projectiles into the sky.
Offering insurance for space flight might seem like an insane business decision. The pool of customers is tiny, and the risk is, well, astronomical.
The industry collected $715 million in premiums and paid out $636 million in claims last year, according to an insurance industry expert. That's a slim profit, but margins are known to bloat or thin from year to year. Having a small pool of customers means dealing with volatility.
Drivers need insurance before they get on the road. And space companies need it before they hurtle metal projectiles into the sky.
Offering insurance for space flight might seem like an insane business decision. The pool of customers is tiny, and the risk is, well, astronomical.
The industry collected $715 million in premiums and paid out $636 million in claims last year, according to an insurance industry expert. That's a slim profit, but margins are known to bloat or thin from year to year. Having a small pool of customers means dealing with volatility.