In-orbit servicing (life extension)

In-orbit servicing, or life extension, covers operations in which a specialized vehicle docks with an aging satellite, usually one running low on fuel. The vehicle takes over station-keeping and attitude control, and the satellite keeps working without being replaced. The technique changes the insured risk in two ways. First, it adds a novel, high-risk operation: docking in orbit two objects that were not designed for each other. A failure can damage or destroy both spacecraft. Second, it changes the operator's economics. Instead of paying for a new launch, and carrying its risk, to replace a satellite that still works but has run out of fuel, the operator extends an asset it has already written down; both the insured value and the length of cover change. The insurer then has to settle who is liable if the docking fails or damages the client satellite, and what cover applies during an extended life the original policy never anticipated. The segment is still young. If it grows, it could eventually cut the number of replacement launches, and the launch exposure that comes with them.