Low insurance costs for the rocket provides it with an edge against competing aerospace firms.
Moving on to SpaceX news, Elon Musk stated that low insurance costs of the company’s Falcon 9 reusable rockets provide an edge over its competitors. The aerospace company’s CEO tweeted on Thursday that it costs “over a million dollars less” to insure a Falcon 9 mission. An anonymous space insurance underwriter mentioned to Business News Channel CNBC, that “Musk’s reference is true for insurance premiums, which are based on the rocket’s price tag, but not for the insurance rate, which is based on the market’s perceived reliability of the rocket”. The underwriter also specified that the insurance rate on a Falcon is approximately 4%.
Furthermore, he confirmed that Falcon 9’s insurance premiums stand at approximately $2.5 million, while competing rockets such as the Ariane 5 and the Atlas V, manufactured by the Arianespace SA and United Launch Alliance (ULA) respectively, are estimated at $7 million. According to SpaceX’s website, the cost per launch of a Falcon 9 rocket is estimated at $62 million, while reusable booster missions are priced at “around $50 million”. Falcon 9 rockets are used as the main carriers for SpaceX’s Starlink missions, with the objective of providing Satellite Internet Access via Starlink satellite constellations.