Aircraft Insurance Market Research Report—Global Forecast till 2030

Aircraft Insurance Market Information 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),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 Umb

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

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Aircraft Insurance Market

Aircraft insurance market is projected to be worth USD 16.84 billion by 2030 at a CAGR of 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
Companies Profiled   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
Market Driving Forces   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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Global Aircraft Insurance Market Research (MRFR Insights)


Aircraft insurance market is projected to be worth USD 16.8 billion by 2030 at a CAGR of 2.78% by 2020-2030.The aviation industry is vulnerable to various dangers and risks, particularly concerning the technical operations of aircraft and the associated risks.. Aviation insurance is a specialty insurance created to protect against both the specific uses of an aircraft and other aviation-related risks. Losses brought on by hazards like property damage, cargo loss, or personal injury are covered by aviation insurance. Furthermore, guards against financial losses brought on by aviation hazards such as damage to property, loss of cargo, destruction of goods, and personal injury. It guards against unforeseen losses for both aircraft owners and operators. The development of the aviation industry in the developing world facilitates the expansion of the market.

COVID-19 Impact Analysis


Due to the cancellation of numerous commercial and private flights due to the COVID-19 outbreak, the business had numerous challenges. Therefore, this flight cancellation directly affects the market income. Additionally, when many enterprises and entire nations were shut down due to the epidemic, there was a fall in the market for aircraft insurance. But as the need for cargo flights has grown significantly, so needs airplane insurance. Thus, the COVID-19 health crisis has moderately impacted the size of the Industry.


Aircraft Insurance Market Dynamics


Aviation insurance providers bill aircraft owners at predetermined intervals for a predetermined premium based on the size of operations, air traffic data, and the number of airlines using the airport's services. Depending on each customer's specific needs, various aviation insurance plans offer various options. Additionally, specialized insurance is readily available to shield airport owners from a potential legal liability resulting from the operation of hangars or the sale of special aviation equipment. This kind of insurance differs in many ways compared to other forms of transportation insurance. These factors are anticipated to fuel the Aircraft Insurance Market expansion.


 Market Drivers



  • Increasing air passenger traffic


People traveling by plane has increased significantly over the last ten years. Most of this may be ascribed to two important factors: the aviation industry's steady growth and the constantly expanding ranks of middle-class air travelers. In its annual Commercial Market Outlook (CMO) report published in April 2021, one of the world's greatest aerospace and military corporations, the Boeing Company, predicted that over the next 20 years, demand for new jet aircraft will increase to over 2,200 India alone. The company attributed this demand to the country's rising middle-income segment and strong aviation expansion. According to the aircraft insurance market report, passenger traffic is anticipated to expand faster than the global average and nearly double in comparison to pre-epidemic levels by 2030, notwithstanding the short-term difficulties caused by the pandemic.  


Market Restraints:



  • High cost of aircraft insurance


The aviation sector has made considerable strides in the past ten years, from technological innovations to flexible methods of building airplanes and inventories of aircraft parts. The expense of maintaining and repairing contemporary aircraft has dramatically grown, even though they are lighter and more efficient, thanks to technical advances in aviation. Engine compressors cast as a single unit, complete with blades, are standard equipment on more recent aircraft. As a result, any irreparable damage to any portion of the device necessitates its replacement, which is far more expensive. Additionally, the composite materials utilized in more recent aircraft engines typically cost more than the conventional ones they are replacing.


Market Opportunities:



  • The rise in the frequency and cost of insurance claims


Due to the introduction of automation and technological breakthroughs, aviation has been more secure than ever over the past years. But there is a price to pay for this increased safety. Despite a decline in accident frequency, the ones that do happen are typically more expensive than before. The cost of insurance claims often rises due to the litigiousness of insurance claimants, which is on the rise. A second factor in the much higher maintenance and repair costs is the increased usage of composite materials in the aircraft structure


Aircraft Insurance Market Segmention

End User Insights


The aircraft insurance market segmentation, based on end use, is 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. The aircraft insurance Industry growth was prominently high under the airlines category in 2021 and is expected to grow during the aircraft insurance market forecast period. This insurance protects against the dangers connected to all airline carriers. The insurance covers all cargo and passenger airlines, from a single aircraft to sizable airline fleets.


Type Insights


The aircraft insurance market segmentation, based on type is 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. The passenger liability insurance segment had a prominent share in 2021. Passengers who sustain injuries due to an accident on a flight are covered by passenger liability insurance. This is a requirement under the law in many countries around the world. Instead of being protected by public liability insurance, passengers on a plane are protected by passenger liability insurance.


Application Insights


Based on application, the market is divided into commercial and, business & general aviation. The commercial aviation segment had a prominent share in 2021. Due to the increased development of commercial aircraft to accommodate the increasing air passenger traffic, the sub-segment led the market for aircraft insurance.


Aircraft Insurance Market Share, by Region, 2021 (%)Aircraft Insurance Market Share, by Region, 2021 (%)Aircraft Insurance Market Overview, by Region


By region, the aircraft insurance market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific accounted for the most extensive market share. North America is projected to exhibit the highest CAGR during the review period.


Asia-Pacific


Asia Pacific was the most extensive market share in 2021. The culture of domestic air travel is drastically changing in developing countries like China and India, which is helping the Asia-Pacific the market to grow overall. Opening new air routes and deploying next-generation aircraft are also contributing to the market's expansion. The Asia-Pacific market's revenue growth is primarily related to the region's successful industrial development, significant government investments in infrastructure development projects, and strict laws governing air travel safety. 


North America


North America was anticipated to encounter the fastest aircraft insurance market growth rate in 2021. The market was growing due to the recent rise in air passenger traffic. The aviation sector in North America is developed and has several aircraft OEMs. Due to increased government R&D spending and purchases of cutting-edge fighter planes, helicopters, transport, and training aircraft from local suppliers, the defence sector has principally benefited.


Aircraft Insurance Market Competitive Landscape


The market includes tier-1, tier-2, and local players. The tier-1 and tier-2 players have global reach with diverse product portfolios. Companies such as Allianz  Corporate & Specialty (AGCS) (Germany), Willis Towers Watson (England) and STARR INTERNATIONAL COMPANY INC.(US) dominate the market due to product differentiation, financial stability, strategic developments, and diversified regional presence. The players are concentrating on supporting aircraft insurance market research and development.


Prominent players in the market include Allianz Corporate & Specialty (AGCS) (Germany), Willis Towers Watson (England), STARR INTERNATIONAL COMPANY INC.(US), Arthur J. Gallagher & Co. (US), Marsh LLC (US).,American International Group (AIG) (US), Chubb (Switzerland), AXA (France), Munich Re (Germany) among others.


Scope of the Aircraft Insurance Market Segmentation


End User Outlook



  • 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 Outlook



  • 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

  • Umbrella Insurance


 Application Outlook



  • Commercial Aviation and Business

  • General Aviation


 Region Outlook



  • North America

    • US

    • Canada

    • Mexico



  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Rest of Europe



  • Asia-Pacific

    • China

    • India

    • Japan

    • Australia and New Zealand

    • Rest of Asia-Pacific



  • Rest of the World

    • South America

    • Middle East

    • Africa




Objectives of the Study


The objectives of the study are summarized in 5 stages. They are as mentioned below:


 Aircraft Insurance Market Forecast & Size:


To identify and estimate the aircraft insurance market size for the aircraft insurance segmented by end user, type, and application by value (in US dollars). Also, to understand the consumption/ demand created by consumers of aircraft insurance between 2022 and 2030


Market Landscape and Trends:


To identify and infer the drivers, restraints, opportunities, and challenges.


Market Influencing Factors:


To find out the factors which are affecting the sales of aircraft insurance among consumers


Impact of COVID-19:


To identify and understand the various factors involved in the market affected by the pandemic


Company Profiling:


To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company in the past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.


Intended Audience



  • Aircraft insurance producers

  • Raw material suppliers

  • Retailers, wholesalers, and distributors

  • Governments, associations, and industrial bodies

  • Investors and Trade Experts



Report Scope:

Report Attribute/Metric Details
  Market Size   USD 16.84 billion,2030
  CAGR   2.78% CAGR (2020-2030)
  Base Year   2021
  Forecast Period   2020-2030
  Historical Data   2020
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   End User, Type, and Application
  Geographies Covered   North America, Europe, Asia-Pacific, and the Rest of the World (RoW)
  Key Vendors   Allianz Global Corporate & Specialty (AGCS) (Germany), Willis Towers Watson (England) and STARR INTERNATIONAL COMPANY INC.(US)
  Key Market Opportunities   The rise in the frequency and cost of insurance claim
  Key Market Drivers   Increasing air passenger traffic


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Frequently Asked Questions (FAQ) :

The Aircraft Insurance Market forecast period is 2022 - 2030

The Aircraft Insurance Industry is expected to register a CAGR of ~2.78% over the next 10 years, according to the aircraft insurance market research.

Asia Pacific is expected to register the highest CAGR during 2020- 2030

Aircraft Insurance Industry dominated in Europe held the largest share in 2021

The Aircraft Insurance Market size is expected to be USD 16.8 billion by 2030.

Allianz  Corporate & Specialty (AGCS) (Germany), Willis Towers Watson (England), Starr International Company Inc. (US) are the major companies operating in the Industry.