Lloyd’s in talks to insure “tourist” space flights

Lloyd’s is apparently in discussions to insure the first “tourist” flights into space in 2008.Virgin is proposing to launch the space flights for tourists from a site in New Mexico, and media reports have indicated that Lloyd’s are among the insurers in talks about providing cover.According to the company’s Web site, Bruno Ritchie, director of the aerospace division at Hiscox Global Markets, says the first thing the insurance market will have to determine is if the risk is an aviation or space risk.Ritchie says insurance is likely to be sought for the hull value of the spacecraft, with the price of cover dependent on the safety and reliability of the venture established through its testing phase, which will reportedly comprise 50 to 100 test flights.Many potential passengers who have registered an interest in paying US$200,000 each for the space flights would require personal accident cover, Ritchie says. However, he adds, initially passengers may have to travel at their own risk, because insurers might be reluctant to provide personal accident cover until a safety record for the flights is established.Third-party liability cover may also be required to protect Virgin against claims from people living nearby the launch site in case of pollution or a crash occurring over their homes, Ritchie says. Construction on the spacecraft is due to begin next month. The flights will give passengers 20 minutes in space, with five minutes in a weightless state. Initially the flights are scheduled to launch once a week, eventually moving to once a day.