Aircraft Insurance Market Research Report—Global Forecast till 2027

Aircraft Insurance Market Research Report Information : End User (Airlines, Airports, Aircraft Product Manufacturers, Leasing Companies, Ground Operators, Individual General Aviation Aircraft Operators, Air Taxi Operators, Corporate Aircraft Operators and Owners, and Maintenance, Repair & Overhaul (MRO) Companies),Type (Public Liability Insurance, Passenger Liability Insurance, Combined Single Limit (CSL),Ground Risk Hull (Motion) Insurance, Ground Risk Hull (Non-Motion) Insurance, Hangar and Ground Support Equipment Insurance, In-Flig...

ID: MRFR/A&D/8057-CR | February 2022 | Region: Global | 168 pages         

Aircraft Insurance Market

Aircraft insurance market is projected to be worth USD 16,844.43 million by 2027 at a 2.78%

Segmentation

By End User Airlines Airports Aircraft Product Manufacturers Leasing Companies Ground Operators Individual General Aviation Aircraft Operators Air Taxi Operators Corporate Aircraft Operators and Owners and Maintenance Repair & Overhaul (MRO) Companies
By Type Public Liability Insurance Passenger Liability Insurance Combined Single Limit (CSL) Ground Risk Hull (Motion) Insurance Ground Risk Hull (Non-Motion) Insurance Hangar and Ground Support Equipment Insurance In-Flight Insurance and Umbrella Insurance
By Application Commercial Aviation and Business & General Aviation

Key Players

  • Allianz Global Corporate & Specialty (AGCS) (Germany)
  • American International Group (AIG) (US)
  • ACE Holdings W.L.L (Bahrain)
  • Willis Towers Watson (England)
  • Chubb (Switzerland)
  • STARR INTERNATIONAL COMPANY INC.(US)
  • AXA (France)
  • Arthur J. Gallagher & Co. (US)
  • Munich Re (Germany)
  • Marsh LLC (US)

Drivers

  • Growing Air Passenger Traffic
  • Stringent Government Regulations Pertaining to Aircraft and Passenger Safety
  • Development of New Airports
  • High Cost of Aircraft Repair
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Aircraft Insurance Market Overview


Aircraft insurance market is projected to be worth USD 16,844.43 million by 2027, registering a CAGR of 2.78% during the forecast period (2021-2027).


Aircraft insurance is developed to offer coverage to the risks involved in the aviation industry and aircraft operations, including personal injury, damage to the aircraft, and property damages. In other words, the aircraft insurance indicates to indemnification of the customer against the losses that have occurred as a result of maintenance, damage, hanger at the airport, and the use of aircraft. This aircraft insurance is also called aviation insurance. 


According to the Aircraft Insurance Market Analysis, market segmentation plays a crucial role in developing the current market. Presently, the global market has divided into different aircraft insurance types such as Passenger Liability Insurance, Public Liability Insurance, Ground Risk Hull (Motion) Insurance, Ground Risk Hull (Non-Motion) Insurance, and Combined Single Limit (CSL). Moreover, the industry has been classified into commercial aviation insurance and Private Aircraft Insurance.


Recently, the Business & General Aviation segment has been growing on a large scale because the private companies are adopting the business aircraft to offer enhanced comfort to executives and reduce travel time. Moreover, the increased cost of the development of airports, rising airport modernization programs, and the development of smart airports in countries like India and China are some of the growth driving factors for the airport segment.


COVID-19 Impact Analysis


The aircraft insurance industry faced many difficulties in the wake of the COVID-19 pandemic because many commercial and private flights were canceled. As a result, this cancellation of flights has a direct impact on the market revenue of the industry. In addition, the demand for the Aircraft Insurance Market Trends declined during the pandemic as many businesses were shut down along with different countries shut down. 


However, the demand for cargo flights has increased extensively, which has increased the demand for aircraft insurance. Thus, a moderate impact has been witnessed in the global Aircraft Insurance Market Size in the COVID-19 health crisis.


Market Segmentation



  • Key Market Drivers: 


The stringent government regulations associated with passenger and aircraft safety are one of the major driving factors for the Aircraft Insurance Market. Moreover, the growing air passenger traffic is expected to boost up the present market growth over the review period. In addition, the development of new airports, a higher level of liability awards, and the increased cost of aircraft repair are also projected to fuel the Market Growth.


According to Invest India report, the Indian government has proposed to develop 100 airports under the UDAN scheme by the end of the year 2024 and is predicted to spend $1.83 bn on the airport development. This is resulting to enhance the Aircraft Insurance Market Value in the further coming years. 



  • Market Opportunities:


The global Aircraft Insurance Market has significant opportunities due to the high cost associated with aircraft development and the increasing air passenger traffic.


Additionally, the global COVID-19 pandemic has also helped to increase the demand for aircraft insurance as many airline cancellations have been evident. This results from bringing lucrative opportunities for the manufacturers and market players of the global Aircraft Insurance Industry .



  • Market Restraints:


The global Aircraft Insurance Market might experience restraints due to the existing backlogs in aircraft deliveries. Also, the costly aviation insurance claims may hamper the growth of the global market during the review period. 


Furthermore, the Aircraft Insurance Market Size might get affected due to the asset recovery risk related to airline bankruptcy across the world. 



  • Market Challenges:


The costly aviation insurance claims might bring major challenges to the worldwide Aircraft Insurance Market. Additionally, the present market might experience challenges because of the asset recovery risk in relation to airline bankruptcy. 


As per the Market Forecast report, the global coronavirus outbreak has affected the demands of aircraft insurance and brought severe challenges to the global market during the review period. 


Cumulative Growth Analysis:


In the past few years, it has been estimated that the worldwide market has gained success in achieving the largest Aircraft Insurance Market Share. Further, it is predicted to continue the same market share by applying new ideas to the global market in the upcoming years.


The key market players are getting engaged in the market to enhance the Aircraft Insurance Market Value in the further coming years. Also, these players are working collaboratively to generate their presence in different parts of the world. 


Market Segmentation



  • By Application:


On the basis of the application segment, the global Aircraft Insurance Market has been segmented into Business & General Aviation, Commercial Aviation, and others. 


In 2019, the commercial aviation segment was dominating the global Aircraft Insurance Market. Further, this segment is predicted to expand at the highest CAGR in the research period of 2020 to 2026. This segment is driving the market growth due to the increasing air passenger traffic and the growing development of commercial aircraft.



  • By End-User:


The global Aircraft Insurance Market has been segregated into airlines, air taxi operators, aircraft product manufacturers, and others based on the end-user segment.


In 2019, the airline's segment was projected to dominate the Aircraft Insurance Market. However, it is anticipated to expand at the highest CAGR in the assessment period. The airline operators are getting encouraged to spend on aircraft insurance due to the high risks associated with the aviation industry, such as flight delays, accidents, and passenger injuries. Furthermore, the demand for aircraft insurance has increased due to several airline cancellations at the time of the COVID-19 pandemic.


Regional Analysis


Regionally, the Aircraft Insurance Market Trends has covered various regions such as Europe, North America, Asia-Pacific, Middle East Africa, and the rest of the world. 


In 2019, the North American region was projected to dominate the market because of the presence of prominent insurance providers like Berkshire Hathaway Inc. and American International Group, Inc. Moreover, the European region is projected to drive the Aircraft Insurance Market due to the presence of prominent aircraft manufacturers like Airbus SAS in the region.


Apart from this, the Asia-Pacific regional market is accounted to register the highest CAGR in the analysis period. This region is expanding due to the increasing air passenger traffic in the countries like India and China. In addition, the Middle East Africa region is driving the market growth due to the increasing development of new airports in the country like UAE and the growing manufacturing of UAVs in the region. Furthermore, aircraft OEMs like Embraer SA enhance the Aircraft Insurance Market growth in the rest of the world. 


Competitive Landscape Analysis


According to Aircraft Insurance Market Analysis, the present market is growing significantly with the contribution and efforts of market leaders. These market leaders are:



  • MARSH LLC (US)

  • Allianz (Germany)

  • Berkshire Hathaway Inc. (US)

  • Ace Aviation (US)

  • Munich Re (Germany)

  • STARR INTERNATIONAL COMPANY, INC. (US)

  • American International Group, Inc. (US)

  • Santam Insurance (South Africa)

  • Chubb (US)

  • AXA (France)

  • Tokio Marine HCC (US)

  • Old Republic Aerospace (US)

  • Gallagher (US)

  • Global Aerospace, Inc. (US)

  • Malayan Insurance (Malaysia)

  • Willis Towers Watson (UK)


The above-mentioned key market leaders are implying new tactics to show their presence in the global Aircraft Insurance Market. They are focusing on merging, partnerships, agreements, advertisement, and others to enhance the performance of the worldwide market. Additionally, the major focus is given to the research and developmental settings to boost up the demand of the Market over the forecast year. 


Recent Developments


The prominent player MARSH LLC has recently introduced exclusive MACH 4 aviation insurance features like rate guarantee, underwriting advancements, client dividends, exclusive insight and benchmarking data, safety & loss control services, and broad, scalable coverage to its clients. 


Report Overview


As per the Aircraft Insurance Market Outlook report, this report combines both qualitative and quantitative research analysis where primary and secondary data collection methods have been involved. This report explains that a significant Aircraft Insurance Market Share has been witnessed in recent years. 


Market Forecast report covers the market overview, regional analysis, recent developments, market segmentation, and competitive landscape analysis. Here, the key market players are adopting new strategies and tactics to enhance the market growth in the further coming years. 


Segmental Table:


By application



  • Business & General Aviation, 

  • Commercial Aviation, 

  • others


By end-users



  • airlines, 

  • air taxi operator, 

  • aircraft product manufacturers

  • other



Report Scope:
Report Attribute/Metric Details
  Market Size    2027: USD 16,844.43 Million
  CAGR   2.78% CAGR (2021-2027)
  Base Year   2020
  Forecast Period   2021-2027
  Historical Data   2018-2019
  Forecast Units   Value (USD Million)
  Report Coverage    Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered    End User, Type, and Application
  Geographies Covered    North America, Asia-Pacific, Europe, Middle East, and Rest of the World
  Key Vendors   Allianz Global Corporate & Specialty (AGCS) (Germany), American International Group (AIG) (US), ACE Holdings W.L.L (Bahrain), Willis Towers Watson (England), Chubb (Switzerland), STARR INTERNATIONAL COMPANY, INC. (US), AXA (France), Arthur J. Gallagher & Co. (US), Munich Re (Germany), and Marsh LLC (US)
  Key Market Opportunities   Reduced Market Entry Barrier
  Key Market Drivers   â€¢ Growing Air Passenger Traffic • Stringent Government Regulations Pertaining to Aircraft and Passenger Safety • Development of New Airports • High Cost of Aircraft Repair


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Frequently Asked Questions (FAQ) :

Aircraft insurance market can expand at 2.78% CAGR by 2027.

By 2027, the Aircraft insurance market value can surge at generate decent value.

MARSH LLC (US), Allianz (Germany), and STARR INTERNATIONAL COMPANY, INC. (US) are some reputed names in the Aircraft insurance market.

Upcoming developments in airports can promote the Aircraft insurance market.

Costly aviation fares can restrain the Aircraft insurance market expansion.