Innovative Insurance Coverage a Prerequisite for Historic Satellite Launch
15 Mars 2005 - 9:00PM
PR Newswire (US)
Innovative Insurance Coverage a Prerequisite for Historic Satellite
Launch Aon Brokers Coverage for New Orbiting Broadband Network
CHICAGO, March 15 /PRNewswire-FirstCall/ -- The launch of a six-ton
satellite from Cape Canaveral, Florida on Friday was not only the
first phase of a plan aimed at boosting the capacity of worldwide
broadband data transmission, it was the culmination of years of
groundbreaking risk analysis by Aon's space risk experts, resulting
in a new kind of insurance coverage. Aon partnered with U.K.-based
Inmarsat to broker create this specialized risk coverage for the
Inmarsat-4 F-1 communications satellite. (Logo:
http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGO ) "Space is
the foundation for more of today's high-tech communications than
most people realize," according to Ted Johnson, managing director
of the Washington, DC-based Aon Space group. "Aon has been
supporting commercial space ventures since 1998. We're proud that
the partnership between Inmarsat's satellite engineers and Aon's
space technology experts has resulted in insurance coverage that
has made this historic launch possible." Roughly the size of a
double-decker bus, the Inmarsat satellite is one of the largest and
most powerful commercial communication satellites ever launched.
The I-4 will make data transfers of up to 432 kilobits per second
(kbit/s) possible for mobile users virtually anywhere in the world,
according to Inmarsat's Director of Corporate and Investor
Communications, Chris McLaughlin. "The I-4 satellites are part of a
$1.5 billion program designed to enhance voice and high-bandwidth
data communications around the world," McLaughlin says. "The launch
of the Inmarsat-4 F-1 satellite is an important first step in
bringing broadband to a mobile planet." Aon spent several years
working closely with company executives to design an insurance
program tailor-made for the I-4. "This was a noteworthy benchmark
for satellite risk analysis," he said. "It was 'clean sheet of
paper' stuff; a true partnership." After being appointed Inmarsat's
broker in September, 2001, the first thing Aon's space risk experts
had to do was determine whether the I-4 was even insurable. "It was
something no one had ever seen before," according to Aon Space
Senior Vice President Tim Rush. Once insurability was determined,
Rush said the next challenge was figuring out what would constitute
an actual loss. "There was a great deal of emphasis in the
beginning on defining the risk and crafting the coverage," Rush
said. "How do you measure and quantify a loss of this type? What
happens if there's an impairment to the satellite's systems that
diminishes its value? These are some of the questions we had to ask
ourselves." From its geostationary Earth orbit of 36,000 km, the
solar-powered Inmarsat-4 will significantly increase the available
bandwidth for global mobile data transmission via satellite.
According to Inmarsat experts, the I- 4 is different from a
conventional commercial communications satellite because it can
focus power through very narrow beams to a small area on the Earth,
and the beams can be dynamically repositioned according to
requirements. Inmarsat was established in 1979 as a
maritime-focused satellite communications operator. The company
owns and operates a fleet of 10 satellites supporting links for
phone, fax and data communications to more than a quarter of a
million ship, vehicle, aircraft and portable terminals. Aon
provides risk management and insurance brokering services,
particularly in asset and revenue protection to all sectors of the
satellite communications industry. Aon's space insurance
specialists have extensive experience in placing coverage for
cutting-edge technologies, working closely with engineers who
understand the mechanics of satellites and the challenges and
opportunities inherent in the space industry. About Aon Aon
Corporation ( http://www.aon.com/ ) is a leading provider of risk
management services, insurance and reinsurance brokerage, human
capital and management consulting, and specialty insurance
underwriting. The company employs approximately 48,000
professionals in its 500 offices in more than 120 countries. Backed
by broad resources, industry knowledge and technical expertise, Aon
professionals help a wide range of clients develop effective risk
management and workforce productivity solutions. Contact: Al
Orendorff Aon U.S. Public Relations 312-381-3153 This press release
contains certain statements relating to future results, which are
forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from either
historical or anticipated results, depending on a variety of
factors. Potential factors that could impact results include the
general economic conditions in different countries around the
world, fluctuations in global equity and fixed income markets,
exchange rates, rating agency actions, resolution of pending
regulatory investigations and related issues, including those
related to compensation arrangements with underwriters, pension
funding, ultimate paid claims may be different from actuarial
estimates and actuarial estimates may change over time, changes in
commercial property and casualty markets and commercial premium
rates, the competitive environment, the actual costs of resolution
of contingent liabilities and other loss contingencies, and the
heightened level of potential errors and omissions liability
arising from placements of complex policies and sophisticated
reinsurance arrangements in an insurance market in which insurer
reserves are under pressure. Further information concerning the
Company and its business, including factors that potentially could
materially affect the Company's financial results, is contained in
the Company's filings with the Securities and Exchange Commission.
http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGO
http://photoarchive.ap.org/ DATASOURCE: Aon Corporation CONTACT: Al
Orendorff, Aon U.S. Public Relations, +1-312-381-3153 Web site:
http://www.aon.com/
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