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Payloads are insured, most likely SpaceX itself takes most of the loss.

Insurance isn't magic money. The cost of the satellite is recouped through premiums charged to companies launching satellites. It becomes part of the cost of launching one way or another. If gain X has cost Y, Y still factors into the tradeoff even if it's insured.

To put it in concrete terms, if insurers decide that SpaceX is significantly more dangerous to its payloads, then launch insurance for satellites using SpaceX rockets will become significantly more expensive.

Not sure what you're getting at with the condescending tone. My point is that the satellite owner did not realize a $200m loss; SpaceX being at least partially self-insured, from what I've read, is more likely to take a hit. There were 85 launches in 2016, one rocket blowing up is not going to significant change the landscape (heh).

Disclaimer: I don't know shit about the space industry, so don't waste your time.

We're discussing the tradeoffs involved in making launches cheaper but more risky. My point here is that insurance is irrelevant to that tradeoff. One way or another, the payload owners are ultimately paying for that risk.

The insurer took the loss on the satellite, SpaceX took the loss on the vehicle/launch contract, and the pad equipment.

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