NEW YORK, June 6, 2024 /PRNewswire/ — The global aerospace insurance market size is estimated to grow by USD 819.3 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 4.48% during the forecast period. The commercial airline industry faces challenges such as lengthy security checks, cancellations, and delays, leading to passenger dissatisfaction. The grounding of new aircraft like the Boeing 787 Dreamliner due to safety concerns has further impacted the sector. In response, business travelers have turned to non-airline aviation services, including charter flights, which are often insured.
This trend, driven by the growth of corporate jet deliveries and flight cards, has increased the demand for aerospace insurance. With decreasing insurance policy prices and fewer claims, the aerospace insurance sector has ample underwriting capacity. As the global economy recovers, underwriters are now insuring new business classes, fueling the expansion of the aerospace insurance market.
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Aerospace Insurance Market Scope |
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Report Coverage |
Details |
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Base year |
2023 |
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Historic period |
2018 – 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.48% |
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Market growth 2024-2028 |
USD 819.3 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023 (%) |
4.22 |
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Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
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Performing market contribution |
Europe at 65% |
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Key countries |
US, UK, China, France, and Japan |
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Key companies profiled |
Ace Aviation, Allianz SE, American Financial Group Inc., American International Group Inc., Aon plc, Arthur J. Gallagher and Co., Avion Insurance Agency Inc., AXA Group, Berkshire Hathaway Inc., BWI Aviation Insurance Agency Inc., Chubb Ltd., Global Aerospace Underwriting Managers Ltd., Hallmark Financial Services Inc., London Aviation Underwriters Inc., Marsh and McLennan Companies Inc., Munich Reinsurance Co., Starr International Co. Inc., Tokio Marine Holdings Inc., Wells Fargo and Co., and Willis Towers Watson Public Ltd. Co. |
Market Driver
The aerospace industry faces unique risks that require specialized insurance coverage. Insurance for aerospace companies covers various aspects such as aircraft, satellites, and spacecraft. One trend in the aerospace insurance market is the increasing demand for cyber insurance due to the growing reliance on technology in the industry.
Another trend is the rise in interest for drone insurance as their usage becomes more prevalent. Additionally, the industry is seeing an uptick in the use of predictive analytics to assess risks and tailor insurance policies accordingly. Overall, the aerospace insurance market is evolving to meet the specific needs of this dynamic industry.
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Market Challenges
- Aviation accidents, despite being rare, pose significant risks for major aircraft manufacturers and airlines. Human error is the leading cause of total loss, accounting for increased insurance costs and premiums. Technological advances have reduced the risk, but assessment and training have not yielded significant results. High-value hull losses and accidents during tests or flights impact renewals.
- Underwriters vary in identifying general aviation risk constituents, with passenger seat number and aircraft age being major considerations. Recent events, such as airport attacks and crashes, have led to an anticipated increase in premium rates due to war risks. Airlines may modify routes or collaborate with local carriers to maintain service in safer regions. These factors present challenges for the growth of the global aerospace insurance market.
- The aerospace industry faces unique risks that require specialized insurance coverage. Insuring aircraft and spacecraft involves significant costs and potential for catastrophic losses. Risks include damage during manufacturing, transportation, and operation, as well as liability for accidents and injuries. Additionally, the international nature of the industry adds complexity with varying regulations and jurisdictions.
- Coverage for satellite launches and space debris also adds complexity. Underwriters must assess risks carefully and provide customized solutions to meet the specific needs of aerospace companies. The market for aerospace insurance is competitive, with many providers vying for business. However, the industry’s inherent risks make it a challenging market to navigate.
Research report provides comprehensive data on impact of trend, driver and challenges – Request a sample report!
Segment Overview
- End-user
- 1.1 Service providers
- 1.2 Airport operators
- 1.3 Others
- Type
- 2.1 In-flight insurance
- 2.2 Public liability insurance
- 2.3 Passenger liability insurance
- 2.4 Others
- Geography
- 3.1 Europe
- 3.2 North America
- 3.3 APAC
- 3.4 Middle East and Africa
- 3.5 South America
1.1 Service providers- The aerospace insurance market provides coverage for risks associated with the design, manufacturing, testing, and operation of aircraft and spacecraft. This includes liability for third-party damages, hull and machinery insurance, and protection against war and terrorism risks. Insurance companies use underwriting criteria to assess risk and set premiums, considering factors such as the age and type of aircraft, pilot experience, and flight routes. The market is driven by the growth of the global aviation and space industries, as well as increasing regulations and safety requirements.
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Research Analysis
The Aerospace Insurance Market encompasses various types of insurance policies designed to mitigate risks associated with the aerospace industry. These policies include Aviation Liability Insurance, Hull Insurance, Aircraft Insurance, Space Insurance, Satellite Insurance, and Private Aviation Insurance.
Aviation Underwriters assess and manage risks related to Aircraft Hull Loss, Ground Damage Coverage, In-flight Damage Coverage, and In-flight Insurance. War Risk Insurance, Passenger Liability Insurance, Airport Liability Insurance, Hangar Keeper’s Insurance, Ground Risk Insurance, Launch Insurance, Pre-launch Insurance, and Post-launch Insurance are other essential components of the market. Reinsurance plays a crucial role in risk management, while Aerospace Risk Management firms help clients navigate the complexities of the insurance landscape.
Market Research Overview
The Aerospace Insurance Market encompasses the provision of insurance solutions to entities operating in the aerospace sector. This includes manufacturers, operators, and suppliers of aircraft and spacecraft, as well as providers of related services. The market offers various types of insurance coverage, such as hull and liability insurance for aircraft, and liability insurance for space launches and satellite operations.
Risks covered in the market are diverse, ranging from physical damage to aircraft and spacecraft, to third-party liability for accidents or damages. The market is driven by the increasing demand for air travel and space exploration, as well as the need to mitigate the unique risks associated with these industries. The market is also influenced by regulatory requirements and technological advancements.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- End-user
- Service Providers
- Airport Operators
- Others
- Type
- In-flight Insurance
- Public Liability Insurance
- Passenger Liability Insurance
- Others
- Geography
- Europe
- North America
- APAC
- Middle East And Africa
- South America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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SOURCE Technavio
