Aviation Insurance Market is Growing at a CAGR of 7% during the forecast period 2021-2027

The rise in construction of new airports and a rise in passenger traffic is expected to boost the growth of the global aviation insurance market. The Global Aviation Insurance Market was valued at $xx in 2020, and is estimated to reach $xx by 2027, growing at a CAGR of 7% during the forecast period (2021-2027).

Aviation insurance covers for damage, injury, or loss of life or cargo or for the operation of the aircraft. After the incident of 9/11, the aviation insurance market has completely re-structured the policies with major facilities that bears the losses.

The 9/11 incident was one of the largest losses incurred in the history of insurance. There were thousands of passengers from several countries, including countries from Europe, who lost their lives in the September 11 attack.  Therefore, the laws were restructured in several nations.

  • Prior to the 9/11 attack, terrorist attacks were covered under general insurance in the USA.
  • The Terrorism Risk Insurance Act was first passed in 2002, and revised several times later, in the USA.
  • An Insurance company known as TAISEI Marine and Fire Insurance, in November 2001, declared bankruptcy due to massive insurance claims after the attack
  • The US congress amended Federal Aviation Administration (FAA) Aviation War Risk Insurance Program. The amendment required the FAA to offer war risk insurance to U.S. airline carriers with the premiums which were based on the cost of the coverage prior to the 9/11 terrorist attacks.

Aviation insurance protects both the owners and aircraft operators from unseen losses. The rising number of air passenger traffic is responsible for increasing the development of the aviation insurance market. According to the 2019 report of theB1M.com, over more than 3.5 billion passengers travel by airplane each year which is nearly equal to half of the population of the Earth. Government regulations for passenger safety require passengers to apply for mandatory travel insurance before travelling. In the 2019 gulfnews.com quoted the International Air Transport Association (IATA) which stated that passengers traveling by air is expected to double in the coming twenty years. Thus, with every increasing passenger there will be an increase in travel insurance. Development of new airports are also one of a major driving factor which is propelling the growth of the aviation industry. According to https://www.constructiondive.com/news/7-giant-airport-projects-around-the-world-take-flight/539244/, a report of 2018, stated that over 7 giant airports such as the Al Makhtoum Airport, Dubai, Los Angeles International Airport, etc are under construction. These airports are planning to design major terminals, runways and modern technology to accommodate more passengers. However, costly aviation insurance claims have made insurance companies re-structure their operations and make more user-friendly. A rise in aircraft crashes has led to a rise in insurance claims which is considered as a hindrance in the aviation insurance market. In the year between 2013 and 2018, over 51,900 aviation insurance industry claims worth more than USD16.8 billion and collision and crash incidents accounted for over half the value of all claims, over the past five years.

Global Aviation Insurance Market by Region Outlook (Revenue, USD Million, 2021-2027)

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

In terms of geography, the Asia Pacific region is considered as the fastest growing region. Emerging nations such as India and China are the two major countries which are likely to develop the fastest in terms of the aviation sector. According to CAPA report published in 2020, China is on the verge to officially become the largest aviation market in the world by the next year. The IBEF acclaimed that India’s aviation industry is expected to witness USD 5 billion investment as well as an additional investment of USD 2 billion by the Indian Government for development of airport infrastructure by 2026. Thus, all these factors are expected to lead to a rise in the aviation insurance market in the Asia Pacific region.

The Global Aviation Insurance Segmentation:

Global Aviation Insurance Market by Insurance Type Outlook (Revenue, USD Million, 2021-2027)

  • Public Liability Insurance
  • Passenger Liability Insurance
  • Ground Risk Hull Insurance Not-In-Motion
  • Combined Single Limit
  • Ground Risk Hull Insurance In-Motion
  • In Flight Insurance

Global Aviation Insurance Market by End User Industry Outlook (Revenue, USD Million, 2021-2027)

  • Service Providers
  • Airport operators
  • Others

Key Findings:

  • Based on insurance type, the passenger liability segment is likely to grow the fastest during the forecast period.
  • Based on regions, Asia Pacific is expected to hold the largest share in the aviation insurance market during the forecast period.
  • Based on the end-user, the airport operators’ segment is expected to witness lucrative growth during the forecast period.

Company Profiles and Competitive Intelligence

The key players operating in the market are:

  1. XL Catlin
  2. Wells Fargo
  3. Global Aerospace
  4. American International Group
  5. Avion Insurance
  6. Hallmark Financial Services
  7. Allianz
  8. Willis Towers Watson
  9. MARSH
  10. Johnson Aviation Insurance
  11. Travers & Associates
  12. Starr Insurance Companies
  13. Gallagher

Recent News:

  • Allianz acquired Sri Lanka’s Janashakti General Insurance Ltd in 2018. This acquisition makes Allianz Insurance Lanka the largest general insurers in Sri Lanka, with a market share of approximately 25 percent.


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