Helping shape the future of the UK space sector
The UK government’s new Space Strategy commits substantial investment to grow the sector while introducing regulatory reforms informed by actuarial risk analysis.
The Government Actuary’s Department (GAD) conducted actuarial analysis for the UK Space Agency to evaluate risks and financial implications of reforms aimed at fostering growth and innovation in the space sector. This work supported the development of the UK Space Strategy, which outlines plans to invest billions of pounds to drive economic growth, enhance national security, and advance technologies critical to modern life. GAD’s assessment helped quantify potential costs to taxpayers and benefits to operators, providing a foundation for evidence-based decision-making. The strategy introduces regulatory reforms alongside financial and insurance adjustments, including measures on orbital liabilities, insurance requirements, charging mechanisms, and space sustainability.
The UK Space Strategy identifies seven subsectors for capability development and outlines four priority areas for accelerated progress: satellite communications, in-orbit servicing, assembly and manufacturing (ISAM), space domain awareness, and assured access to space. These priorities aim to strengthen the sector’s resilience and competitiveness while addressing emerging challenges in space operations. The reforms are designed to create a supportive regulatory environment that balances innovation with risk management. GAD’s involvement ensured that financial and operational risks were systematically assessed before implementation.
Actuary Nick Clitheroe, who led the GAD team’s work with the UK Space Agency, stated that the role was to provide an evidence base for policymakers. This evidence base enabled decision-makers to weigh the benefits of innovation and growth against the associated risks, ensuring a balanced approach to reform. The analysis supported the government’s broader objectives of strengthening national security and advancing technologies that underpin modern infrastructure. The reforms are part of a wider package aimed at positioning the UK as a leading space nation.
The reforms announced include adjustments to orbital liabilities, insurance frameworks, charging structures, and sustainability measures, all of which are intended to create a more robust and competitive space sector. These changes follow a previous government consultation and are designed to address gaps in the current regulatory landscape. The UK Space Agency’s collaboration with GAD highlights the importance of actuarial expertise in shaping policies that support long-term sector growth while managing financial and operational risks.