Charter Space: Insuring the Future of Spacecraft

The Genesis of Charter Space: Addressing Data Fragmentation in the Aerospace Industry

Yuk Chi Chan founded Charter Space in late 2021, driven by frustrations experienced during a previous role.

While managing missions at a satellite bus startup, Chan encountered significant challenges coordinating operations with critical data dispersed across numerous Microsoft Excel spreadsheets.

Repackaging Data for Diverse Audiences

As a former space lawyer, Chan found himself repeatedly repackaging the same engineering and program data for various external stakeholders.

He questioned the inefficiency of this process, envisioning a unified interface and data model that accurately represented the physical object in question, regardless of the viewer.

Charter Space: A Fintech Solution for the Space Sector

Chan describes Charter Space not as a conventional development tool for aerospace engineers, but rather as a fintech company specifically tailored for the space industry.

The software directly captures manufacturing and test data from its source, subsequently feeding an underwriting interface connected to the six leading insurance carriers.

TechCrunch Disrupt 2025 Finalist

Charter Space has been recognized as a Startup Battlefield Top 20 finalist at TechCrunch Disrupt 2025, currently taking place in San Francisco.

Streamlining Spacecraft Insurance and Expanding Funding Options

The primary objective of Charter Space is to accelerate and reduce the cost of risk evaluation for spacecraft insurance.

Ultimately, the company aims to facilitate new forms of credit and non-dilutive funding for space companies, lessening their reliance on venture capital and public markets.

Developing a Robust Underwriting Model

A key technical hurdle was the development of a sophisticated underwriting model.

This involved identifying the most crucial factors, assigning appropriate weights, and integrating robust risk analytics with the captured data.

Addressing Early Satellite Failures

Chan highlighted a common issue: a significant number of small satellites experience failures within the first 90 days of operation due to internal technical issues.

Charter Space is actively working to identify and accurately price this risk.

The Scarcity of Spacecraft Insurance

Despite approximately 13,000 satellites currently in orbit, fewer than 300 are insured, according to Chan.

This isn’t due to fraud or conflicting interests, but rather the substantial cost associated with the underwriting process itself.

Reducing Underwriting Costs and Increasing Market Health

Currently, spacecraft operators compile extensive technical documentation, submit it to a broker, and endure months of waiting for technical underwriters to assess the data.

This lengthy process translates into high insurance premiums, with some operators reportedly receiving quotes as high as 80%.

Charter Space intends to mitigate these costs by providing underwriters with a comprehensive overview of all technical details, reducing assessment times.

Promoting Wider Insurance Coverage

Increased insurance coverage is seen as beneficial for the entire space industry, enhancing safety and encouraging investment.

“More insured satellites contribute to a safer overall environment,” Chan stated. “Proliferating insurance coverage provides a safety net for more companies and encourages investment from diverse capital sources.”

This would lessen the dependence on venture capital and growth equity, opening doors to debt, credit, and other financing options common in mature industries.

Current Operations and Product Offerings

Charter’s tools are currently utilized by companies and universities.

A streamlined product is also available for customers seeking only the insurance benefits, without the full suite of engineering management features.

Acquisition of Plover Parametrics

At TechCrunch Disrupt, Charter Space announced the acquisition of Plover Parametrics, a Y Combinator-backed insurtech firm specializing in climate parametric products.

This acquisition will enable Charter to offer “white glove” service by directly issuing policies, bypassing intermediaries.

Unlocking Capital for Space Innovation

The overarching goal is to unlock more affordable capital sources for space companies.

Standardized underwriting practices will facilitate access to a wider range of financing options.

“We need to engage banks and lenders, as they represent a more efficient capital source, both in terms of cost and incentives,” Chan explained.

To delve deeper into Charter Space and explore numerous other innovative companies, attend their pitches, and hear from guest speakers across four stages, join us at Disrupt, Monday to Wednesday, in San Francisco. Learn more here.