ICO has insured the launch and subsequent in-orbit operations of its constellation of 12 satellites through insurance broker J & H Marsh & McLennan at an overall premium of US$77 million.
The insurance package, which covers five years of satellite operations, provides more than $200 million insurance cover for manufacture and launch of replacements for each satellite loss beyond the first two losses.
ICO is launching 12 satellites, built under a contract placed in 1995 with Hughes Space and Communications International, using a mix of four types of launch vehicle. Each vehicle carries one satellite per launch,
with the over-all objective of achieving 10 or more operational satellites in ICO¿s unique medium-earth orbit.
Richard Aspden, ICO¿s Vice President, Space Segment, said: “We are satisfied that we have negotiated an excellent deal for ICO. On the advice of J & H Marsh & McLennan, the market was approached earlier this year when underwriting premium levels were considerably lower than their recent historical base, and they have secured our cover at very competitive rates.”
Brian Moore of J & H Marsh & McLennan cited the professionalism of the Hughes and ICO teams on their presentation of the novel ICO satellite and constellation design concepts as a factor in achieving the premiums. “This contributed significantly to our efforts to secure ICO¿s insurance at the premium we have achieved,” he said.
ICO’s satellite service will be launched in the year 2000, based on a new generation of pocket-sized mobile phones that will allow users to make and receive calls at any time, anywhere in the world. The handsets will be dual mode, capable of working on mobile satellite networks. Customers will be able to roam between ICO and mobile networks around the world. If no cellular network is available, the handset will roam to ICO’s satellite network to offer customers unrestricted mobility and accessibility for their communications needs.
Affordable services will be available to a wide range of users — from people living and working in remote rural areas to the international business traveller. In addition ICO will offer services to the road and
rail transport, maritime and aeronautical sectors.
