1. COMSTAC Risk Management Working Group October 28, 2009 Chris Kunstadter XL Insurance chris.kunstadter@xlgroup.com

2. Page 27-Dec-15 Risk Management Working Group  Extension of CSLA indemnification  Three-year extension passed House and sent to Senate Combined Meeting with Space Transp Ops WG  Orbital debris mitigation for upper stages  Current practices and guidelines  Characterization of current environment

3. Page 3 7-Dec-15 Upper Stage Debris Risks NASA’s viewpoint  Debris is not yet imminently catastrophic, but mitigation should be initiated  Without mitigation, risk increases dramatically in the long term  International consensus (USG, NASA, ESA, IADC, UN) exists for the proper disposal of launch vehicle orbital stages  Passivation  Short-term presence in LEO ( 235+ km)  Limitation of re-entry risks (casualty ratio: 1 in 10,000)  US launch vehicle operators generally doing a good job in all three areas  Formal evaluations for all commercial missions would be beneficial  Greatest challenge [for US launch vehicles] is the reentry risk for Delta 4 and Atlas 5 orbital stages

4. Page 4 7-Dec-15 Growth of Tracked Object Population Objects >5-10 cm Average growth rates: 1961 – 2007: 220 objects/year 2007 – 2009: 2,200 objects/year

5. Page 5 7-Dec-15 Low Earth Orbit Debris Issues  Low earth orbit (LEO) is increasingly used for commercial (and insured) activity  20 insured commercial satellites (out of >2,000 active satellites) in LEO are insured for $1 billion  Typically commercial imaging (e.g., Digitalglobe, GeoEye), but communications (e.g., Iridium, Globalstar, Orbcomm) is growing  LEO has high spatial density and relative velocity, but “self- cleaning” at lower altitudes  Density is highest between 700 and 900 km

6. Page 6 7-Dec-15 Geostationary Orbit Debris Issues  Most commercial (and insured) communications satellites are in geostationary orbit (GEO)  150 insured satellites (out of 300 active commercial satellites) are insured for $16 billion  Lower spatial density and relative velocity, but limited area and no “self-cleaning”  Due to “libration points” (points of stable drift orbit), GEO satellites tend to concentrate at 75° east and 105° west longitude if not maintained  ~1,000 tracked objects in GEO, and many more untracked  ~175 tracked objects “trapped” at libration points

7. Page 7 7-Dec-15 Insured Values in GEO In 10° increments, as of June 1, 2009 ($ millions) Americas EMEA Asia/Pacific L L L = location of libration points (positions of stable drift orbit)

8. Page 8 7-Dec-15 Who’s Doing What?  NASA, ESA – developing guidelines and policy  IADC – inter-governmental co-ordination  UN COPUOS – treaty oversight  USSTRATCOM/JSPOC – tracking objects  Launch vehicle and satellite operators – refining operational procedures  Technical services companies – developing tracking and analysis tools  FAA AST/COMSTAC – investigating effects on commercial space

9. Page 9 7-Dec-15 Space Law and Debris Issues  International space treaties were developed in the ’60s and ’70s, when governments dominated space activity  Saw liability as a citizen of one state being injured by the space activity of another state, and resolving liability issues through diplomatic channels (i.e., state-to-state claims)  Space activity is now heavily commercial  Space treaties facilitate resolution of disputes over liability, but no obligation to go via convention  Issues in the event of a collision between two objects  Determination of cause and proof of liability are difficult  If purchased, first party insurance would typically cover the owner of a damaged satellite for the asset (subject to policy terms)  Loss of revenue, consequential loss, incidental damages, loss of market might be recoverable through other party’s TPL insurance

10. Page 10 7-Dec-15  Q&A  Thank you!