MexSat 1 and 2 Satellite Programme: A Complex and Comprehensively Placed Insurance Programme
The MexSat 1 and 2 satellite programme was one of the highest valued insurance placements that the international satellite insurance market has ever been involved in. Mexico’s Secretariat of Communications and Transportation (SCT) worked closely with Marsh’s Space Projects team to ensure the total value of the satellite programme was covered by a global group of specialist satellite insurers.
To ensure the best possible terms and conditions for the Mexican Government, officials from the SCT met with major satellite insurers on several occasions to help achieve the most favourable terms, and 100% coverage of the risk. The final collaboration included support from more than 30 specialist insurers from countries including Switzerland, Germany, France, UK, Italy, Japan, Spain, and the US.
The relationship between SCT, Marsh, and the international insurers proved to be invaluable when the MexSat 1 satellite suffered a total loss shortly after the lift-off of its launcher, the Proton-M rocket. The SCT promptly organised meetings with its key insurers to expedite the settlement of the Mexican Government’s claim. The insurance of nearly US$390 million was immediately paid in full. Due to the favourable insurance terms and conditions applied to the MexSat 1 and 2 satellite programme, as well as the expedited claim payment for the MexSat 1 loss, the SCT was able to achieve the best possible results on behalf of the Mexican Government.