How Has The Aviation Insurance Market Size Evolved Historically?
The aviation insurance market has seen considerable growth due to a variety of factors.
•In recent times, the aviation insurance market has witnessed robust growth. The market size, which is projected to escalate from $4.49 billion in 2024 to $4.73 billion in 2025, anticipates a compound annual growth rate (CAGR) of 5.5%.
The historic periods' growth can be linked to a surge in air passenger traffic, the emergence of enhanced security threats, health scares and pandemics, advanced aircraft intricacy, and the rise of budget-friendly carriers.
What Will Be The Aviation Insurance Market Size In The Future?
The aviation insurance market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the aviation insurance market size is anticipated to enjoy robust growth, expecting to reach a volume of $5.94 billion by 2029, with a compound annual growth rate (CAGR) of 5.8%.
Factors contributing to this predicted growth in the forecast period include the rise in geopolitical conflicts and tensions, changes in demographics and travel patterns, the growing application of data analytics and telematics, the boom in air travel, and the advent of urban air mobility. The forecast period will also witness some significant trends such as constant progression in aviation technology, ongoing developments in the field of insurtech, the birth of blockchain-enabled insurance platforms, the emergence of parametric insurance, and the inclusion of risk management strategies within the scope of aviation insurance.
What Are The Key Drivers Fueling Growth In The Aviation Insurance Market?
The aviation insurance market is predicted to expand in response to an anticipated increase in air passenger traffic. The term air passenger traffic encompasses all passengers who utilise the airport, both arrivals and departures. It is indicative of the quantity of people ferried by commercial or private aircraft on both national and international routes. Airlines are expected to experience a surge in demand with the rise in air passenger traffic, necessitating the adoption of aviation insurance as a means to cover potential aviation risks that could affect customers on board and aircraft owners. For instance, reports released by the Bureau of Transportation Statistics, a US government agency, in March 2023, revealed an increase of 194 million passengers carried by US airlines in 2022 compared to 2021, a year on year increase of 30%. The total unadjusted passengers carried by US airlines in 2022 amount to 853 million, a significant rise from the 658 million in 2021. Consequently, the spike in air passenger traffic is fuelling the expansion of the aviation insurance market.
What Are The Principal Market Segments In The Global Aviation Insurance Industry?
The aviation insurance market covered in this report is segmented –
1) By Insurance Type: Public Liability Insurance, Passenger Liability Insurance, Ground Risk Hull Insurance Not-In-Motion, Ground Risk Hull Insurance In-Motion, Combined Single Limit, In Flight Insurance
2) By Application: Commercial Aviation, Business And General Aviation, Other Applications
3) By End User Industry: Service Providers, Airport Operators, Other End User Industries
Subsegments:
1) By Public Liability Insurance: Airport Liability Coverage, Third-Party Liability Coverage
2) By Passenger Liability Insurance: Individual Passenger Coverage, Aggregate Passenger Liability Coverage
3) By Ground Risk Hull Insurance Not-In-Motion: Storage And Parking Coverage, Hangar Coverage
4) By Ground Risk Hull Insurance In-Motion: Taxiing Coverage, Ground Handling Coverage
5) By Combined Single Limit: Comprehensive Coverage For Multiple Risks, Tailored Policies For Specific Needs
6) By In Flight Insurance: Passenger Coverage During Flight, Crew Coverage During Flight
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Which Emerging Market Trends Are Altering The Aviation Insurance Sector?
The emergence of innovation within the aviation insurance sector is a prominent trend gaining traction in the market. Major firms in the aviation insurance field are channeling their efforts towards creating unique aviation insurance solutions to maintain their market dominance. To illustrate, HDI Global SE, an insurance organization based in Germany, introduced Aviation IQ in March 2023, a fresh digital platform for general aviation within Canada. This is a groundbreaking insurance platform specialized for the timely and efficient digital processing of general aviation insurance contracts. These contracts encompass small fixed-wing aircraft utilized for personal or business travel. This innovative platform allows brokers to access policy documents in mere minutes. Consequently, this efficient tool will enable both brokers and aircraft owners to save valuable time and resources. It also serves as a useful tool for pilots, granting them the ability to track their flight duration and distance, and modify their insurance coverage as required.
Who Are the Key Players in the Aviation Insurance Market?
Major companies operating in the aviation insurance market include:
• Allianz SE
• AXA SA
• American International Group Inc.
• Chubb Ltd.
• USAA Inc.(United Services Automobile Association)
• Marsh LLC
• Aon plc
• Willis Towers Watson Public Limited
• Arthur J Gallagher And Co.
• Tokio Marine HCC
• AssuredPartners Inc.
• BWI (Berkshire Hathaway Specialty Insurance)
• Great American Insurance Company
• Hallmark Financial Services Inc.
• AIG Aerospace Insurance Services Inc.
• Global Aerospace Inc.
• Starr International Company Inc.
• AOPA Insurance Services
• Avion Express Insurance
• Avemco Insurance Company
• JS Johnson And Co. Ltd.
• Avion Insurance Agency Inc.
• JLT Specialty Ltd.
• Aviation Insurance Resources
• Gallagher Aviation LLC
• Ace Aviation Private Limited
• Aerospace Insurance Managers Inc.
• Travers And Associates Inc.
What are the Regional Insights into the Aviation Insurance Market?
Asia-Pacific was the largest region in the aviation insurance market in 2024. The regions covered in the aviation insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
