Page 37 - The Insurance Times June 2020

(PG): Do hedge funds continue as risk carriers for need to aggregate the cargo outside of earth gravity and
launches? then move this assembled cargo to mars.
(PL): From my experience, space risks is like any other high The moon is certainly a good base for this because it is a lot
volatility risks. The first benefit of only insuring launches is easier to leave lunar gravity than to leave earth’s gravity.
that you can actually ‘watch the claim live’ – right in front Interestingly, it took a decade to put the ISS together, but
of your eyes. However, if you decide to insure satellites, it is SpaceX has shown that it is possible to reduce the delays by
the opposite, you cannot send an expert to assess the
a large factor. Once qualified for orbital missions, it is likely
damages! You would have to rely on temperature, voltage,
that Bezos’s Blue Origin program will show same pace. It is
current data to assess the loss and determine the claim
quite conceivable that building an infrastructure in the earth
value. Hedge funds are looking for risks which are de-
correlated from large natural disasters on earth as a good orbit or on the moon could be done in less than 5 years from
supplement to their portfolio. now.

(PG): Jeff Bezos believes fastest way to Mars is via (PG): Last but not the least, what makes you
moon. Is he on the drawing board? What kind of believe that we need projects like this, in these
time frame could he be nurturing? times?
(PL): Bringing humans to Mars is a challenge in many ways. (PL): Our world is permanently subject to difficult challenges
I would just start with an analogy which helps to visualise such as natural disasters, malnutrition, and more recently
the distances: if the earth were a size of a football, the moon the Covid pandemic. Humanity has shown its resilience,
and mars would be the approximate size of an orange. The however, there are multiple benefits for the people to have
moon would be a few meters away from the earth ball, but ‘positive visions’ as well as challenges to face. In today’s
mars would be a few kilometres away. This generates a large
world, international cooperation is often reduced to
list of issues but just to share a few would help to answer international organisations like United Nations and World
your question. Communication with the earth would Health Organisation. Apart from large sports events like the
necessitate for the signal a few minutes to reach planet
earth and then again, a few minutes for the mars Olympics or World Cups the outcome is never as visible as
inhabitants to receive an answer. Scenarios like “Houston an actual project which everyone can see, understand and
we have a problem!” would then be somewhat different. be part of. Space projects are exceptional, in this respect,
in several ways. The International Space Station is a good
The mars inhabitants would have to be autonomous in many
example.
ways. They would have to solve all kinds of problems
(technical, medical, etc.) on their own. This brings me to There is certainly an enhanced pride when significant
my second point: you need to carry a lot of mass on the projects have a national content. I would just refer to a
planet in order to embark all life support systems, and by speech from Dr APJ Abdul Kalam during the International
the way you would also need to have the rocket and fuel to Astronautical Congress 2007, in Hyderabad. His speech was
come back to earth at some point. This is a big challenge.
Of course, we can imagine that fuel needed to return is a direct message to the young generations. Dr Kalam
produced on mars (therefore the search for water is so explained the importance for a country to have a sustainable
critical). However, the quantity of hardware is so significant growth path, and the vision to see India proud of its
that it cannot be a single rocket mission. One would first leadership. He explained to the young generations that
every one of them will be an active contributor to these
goals. During the following decade, the Chandrayaan
Space underwriters are usually missions have been followed by millions of people around
the world. Thousands of Indian engineers have been involved
qualified space engineers who would
directly or indirectly in this project. I am amazed by the level
consider the flight data, of details known by your countrymen about the past and

manufacturing record and testing of future Indian exploratory missions.

the equipment… to price the risk. PG: Many thanks for these ‘out of this world’
insights, Pierre!

The Insurance Times, June 2020 37