Sompo Japan Insurance to offer satellite coverage, details here

Representational image. News18

Sompo Japan Insurance, one of the biggest property insurers in Japan, is planning to sell satellite coverage, as mentioned in a report by Nikkei Asia. The Japanese start-up Warpspace is going to be the partner of Sompo in this effort. Sompo is set to start developing satellite insurance during fiscal 2023. The policies will be made accessible as soon as fiscal 2024. Premiums and other terms have not been decided yet. Warpspace will help the insurance corporation in assessing the risk of launch accidents or collisions in orbit. The start-up will receive investments from Sompo. The amount of investment in the communication firm has not been disclosed yet.

A satellite communication network is being developed by Warpspace that utilises optical signals rather than electromagnetic signals. This system would reportedly consume less power and transfer a higher volume of data. Beginning in late 2024, the communication company is planning to launch three optical communications satellites. The satellites are going to travel in medium Earth orbit, where there is less space debris.

In the medium Earth orbit, semiconductors would be exposed to stronger radiation, causing disruption in communications. Sompo wants to form a division dedicated to space in April for accelerating the development of insurance for the sector. The demand in medium Earth orbit is expected to grow, with more than 10,000 satellites already travelling in low Earth orbit. The market for medium-Earth-orbit satellite payloads will increase by 7.4 per cent in 2028 from 2021, as per the data given by India-based Data Bridge Market Research, which was accessed by Nikkei Asia.

Headquartered in Tokyo, Japan, Sompo provides automobile insurance, earthquake insurance, housing insurance, fire insurance, casualty insurance, travel insurance, and other insurance services.

On the other hand, Warpspace is a privately held, space-tech start-up firm. Based in Tsukuba, Japan, the company claims to offer cost-effective, high-speed optical links with persistent connectivity for low Earth orbit (LEO) satellites. It allows uninterrupted space-to-ground communication in near real-time, according to the start-up. Warpspace has 9 investors that include KSK Angel Fund and SPARX Innovation for the Future. The company concluded its last funding round on 20 April 2021 from a Series A round.

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