PUBLISHER: The Business Research Company | PRODUCT CODE: 1428276
PUBLISHER: The Business Research Company | PRODUCT CODE: 1428276
Aviation insurance is a policy designed to offer both property and liability protection for aircraft. This coverage extends to damages arising from aviation risks associated with the maintenance and operation of aircraft, encompassing property damage, cargo loss, and personal injuries. It serves as a safeguard against unforeseen losses for both aircraft owners and operators.
The primary categories of aviation insurance include public liability insurance, passenger liability insurance, ground risk hull insurance not-in-motion, ground risk hull insurance in-motion, combined single limit, and in-flight insurance. Public liability insurance is a form of coverage that shields individuals, businesses, or organizations from claims initiated by third parties for bodily injury, property damage, or other losses occurring on their premises or due to their business operations. This insurance finds applications in various sectors such as commercial aviation, business and general aviation, and others, catering to diverse end-user industries such as service providers, airport operators, and more.
The aviation insurance market research report is one of a series of new reports from The Business Research Company that provides aviation insurance market statistics, including aviation insurance industry global market size, regional shares, competitors with an aviation insurance market share, detailed aviation insurance market segments, market trends and opportunities, and any further data you may need to thrive in the aviation insurance industry. This aviation insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The aviation insurance market size has grown strongly in recent years. It will grow from $4.27 billion in 2023 to $4.51 billion in 2024 at a compound annual growth rate (CAGR) of 5.6%. The expansion observed during the historical period can be ascribed to an increase in air passenger traffic, elevated security risks, pandemics, and health concerns, a heightened complexity of aircraft, and the emergence of low-cost carriers.
The aviation insurance market size is expected to see strong growth in the next few years. It will grow to $5.55 billion in 2028 at a compound annual growth rate (CAGR) of 5.3%. The anticipated growth in the forecast period can be linked to the escalation of geopolitical conflicts and tensions, changing demographics and travel behaviors, the rising utilization of data analytics and telematics, booming air travel, and the emergence of urban air mobility. Key trends expected in the forecast period encompass ongoing advancements in aviation technology, continuous developments in insurtech, the introduction of insurance platforms powered by blockchain, the rise of parametric insurance, and the integration of risk management strategies in aviation insurance.
The anticipated growth in the aviation insurance market is expected to be driven by the increasing volume of air passenger traffic. Air passenger traffic encompasses all individuals using airports, including arrivals and departures, representing the total number of people transported by commercial and private aircraft on both domestic and international flights. As air passenger traffic rises, there is an elevated demand for aviation insurance to safeguard individuals within the aircraft and the owners of the aircraft from potential aviation risks. For example, in March 2023, reports from the Bureau of Transportation Statistics, a US government agency, indicated that US airlines carried 194 million more passengers in 2022 compared to the previous year, marking a 30% year-to-year increase. Over the entire 2022 calendar year, US airlines transported 853 million passengers (unadjusted), a significant rise from the 658 million passengers in 2021. Consequently, the surge in air passenger traffic is a key driver of the aviation insurance market's growth.
The growing demand for aircraft is anticipated to contribute to the expansion of the aviation insurance market. Aircraft, designed for air travel, serve various purposes such as transporting passengers and cargo, military applications, aerial surveillance, and recreational activities. Aviation insurance provides coverage for risks associated with aircraft operation and ownership, including the loss, damage, or theft of cargo during transportation. For instance, according to the Bureau of Infrastructure and Transport Research Economics (BITRE), an Australia-based research agency, there were 50,318 Regular Public Transport (RPT) aircraft trips in June 2023, reflecting a 1.7% increase from June 2022. Therefore, the growing demand for aircraft is a significant factor driving the forward growth of the aviation insurance market.
The aviation insurance market is witnessing a prominent trend towards innovation, with major companies in the sector actively engaged in developing inventive solutions to maintain their market standing. For instance, in March 2023, HDI Global SE, a German insurance company, introduced Aviation IQ, a cutting-edge digital platform catering to general aviation in Canada. This platform offers end-to-end digital automation for general aviation insurance contracts, specifically covering small fixed-wing aircraft utilized for personal or business purposes. This innovative tool ensures quick delivery of policy documents to brokers within minutes, enabling significant time and cost savings. Additionally, it serves as a valuable resource for pilots, allowing them to monitor flight hours and mileage and adjust insurance coverage as needed.
Prominent companies in the aviation insurance sector are strategically focusing on collaboration and partnerships to deliver reliable services to customers. A strategic partnership involves a structured affiliation between two or more commercial enterprises, typically established through one or more business agreements or contracts. For instance, in November 2021, SkyWatch, an Israel-based developer of aviation insurance platforms, partnered with Global Aerospace, a UK-based provider of aircraft insurance and aviation risk management solutions, to introduce Aviation Renters Insurance. This on-demand insurance product addresses a longstanding need for flexible and affordable options, particularly benefiting renters and occasional flyers, potentially expanding access to aviation for a broader range of individuals.
In December 2022, Arthur J. Gallagher & Co., a US-based insurance brokerage and risk management services company, completed the acquisition of Aviation Insurance Australia for an undisclosed amount. Through this strategic move, Arthur J. Gallagher & Co. aims to enhance its global aviation insurance capabilities by leveraging Aviation Insurance Australia's experienced team and expanding its market share in Australia. Aviation Insurance Australia, based in Australia, specializes in providing aviation insurance policies and insurance brokerage services to clients in the aerospace industry.
Major companies operating in the aviation insurance market report are 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.
Asia-Pacific was the largest region in the aviation insurance market in 2023. The regions covered in the aviation insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the aviation insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.
The aviation insurance market includes revenues earned by entities by providing aircraft hull insurance, aviation liability insurance, aviation third-party liability insurance, cargo insurance, aviation product liability insurance, aircraft protection, death benefits, and aircraft and passenger security insurance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Aviation Insurance Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on aviation insurance market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for aviation insurance ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The aviation insurance market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.