[eru]

If, say, around 30% of rockets blow up, I don't see why there wouldn't be an insurance willing to write a policy for say 35%?

[dmurray]

Not if the satellite is much more expensive than the rocket. Using the GP's figures of $200mm and $60mm, that would mean paying $70mm in insurance instead of just waiting for the next $60mm flight.

[eru]

Yes, that's true. With an expensive enough satellite, even a free launch would not compensate for 30% failure.