Aircraft Insurance Market Research Report - Forecast till 2027

Aircraft Insurance Market Research Report: Information 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), Application (Commercial Aviation and General & Business Aviation), End-User (Airlines, Airports, Aircraft Product Manufacturers, Leasing Companies, Air Taxi Operators, Corporate Aircraft Operators and Owners and MRO Companies) - Forecast till 2027

ID: MRFR/A&D/8057-HCR | February 2021 | Region: Global | 168 pages

Aircraft Insurance Market Scenario


Aircraft Insurance Market is projected to register a CAGR of 5.77% during the forecast period from 2020 to 2026. Aircraft insurance is insurance designed to provide coverage to aircraft operations and the risks involved in the aviation industry.


Market Synopsis


The Aircraft Insurance Market is expected to register a steady growth during the forecast period owing to factors such as increasing air passenger traffic and stringent government regulations pertaining to aircraft and passenger safety. Furthermore, the high cost of aircraft repair and a higher level of liability awards and the development of new airports are also expected to drive the growth of the market.


Market USP


Rising air passenger traffic and high cost associated with aircraft development and repair are increasing the demand for aircraft insurance.


Aircraft Insurance Market Drivers



  • Growing air passenger traffic: The growing air passenger traffic is increasing the development of new and advanced aircraft that require insurance coverage to offer enhanced safety to passengers and staff and reduce the losses incurred in case of a mishap.



  • Stringent government regulations pertaining to aircraft and passenger safety



  • Development of new airports



  • The high cost of aircraft repair


Market Restraints



  • Costly aviation insurance claims

  • Existing backlogs in aircraft deliveries

  • Asset recovery risk associated with airline bankruptcy


Aircraft Insurance Market Segmentation


By Application



  • Commercial Aviation: The segment dominated the global Aircraft Insurance Market in 2019 and is expected to grow at the highest CAGR during the review period from 2020 to 2026. Rising development of commercial aircraft to cater to the growing air passenger traffic is expected to drive the growth of the segment.



  • Business & General Aviation: The rising adoption of business aircraft by private companies to reduce travel time and offer enhanced comfort to executives is expected to drive the growth of the segment.


By End-User



  • Airlines: The segment dominated the market in 2019 and is expected to grow at the highest CAGR during the forecast period. High risks involved in the aviation industry such as accidents, passenger injuries, and flight delays are encouraging airline operators to invest in aircraft insurance. Furthermore, the global COVID-19 pandemic has also led to several airline cancellations thus driving the demand for aircraft insurance.



  • Airports: The development of smart airports in countries such as China and India, increasing airport modernization programs and the high cost involved in the development of airports are expected to drive the growth of the segment.


By Region



  • North America: North America dominated the aircraft insurance market in 2019 due to the presence of prominent insurance providers such as American International Group, Inc. and Berkshire Hathaway Inc.



  • Europe: The presence of prominent aircraft manufacturers such as Airbus SAS is expected to drive the market growth in the region.



  • Asia-Pacific: The market in this region is projected to register the highest CAGR during the forecast period. Rising air passenger traffic in China and India is expected to drive market growth in the region.



  • Middle East: Increasing manufacturing of UAVs and rising development of new airports in countries such as the UAE are driving the market growth in the region.



  • Rest of the World: The presence of aircraft OEMs such as Embraer SA is driving market growth in the region.


Key Players



  • Allianz (Germany)

  • STARR INTERNATIONAL COMPANY, INC. (US)

  • MARSH LLC (US)

  • American International Group, Inc. (US)

  • Berkshire Hathaway Inc. (US)

  • AXA (France)

  • Chubb (US)

  • Munich Re (Germany)

  • Ace Aviation (US)

  • Santam Insurance (South Africa)

  • Old Republic Aerospace (US)

  • Tokio Marine HCC (US)

  • Global Aerospace, Inc. (US)

  • Gallagher (US)

  • Willis Towers Watson (UK)

  • Malayan Insurance (Malaysia)



Report Scope:
Report Attribute/Metric Details
  Market Size   2026: Significant Value
  CAGR   5.77% (2018-2026)
  Base Year   2019
  Forecast Period   2027
  Historical Data   2018
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Type, Application, End-User
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Allianz (Germany), STARR INTERNATIONAL COMPANY, INC. (US), MARSH LLC (US), American International Group, Inc. (US), Berkshire Hathaway Inc. (US), AXA (France), Chubb (US), Munich Re (Germany), Ace Aviation (US), Santam Insurance (South Africa), Old Republic Aerospace (US), Tokio Marine HCC (US), Global Aerospace, Inc. (US), Gallagher (US), Willis Towers Watson (UK), Malayan Insurance (Malaysia)
  Key Market Opportunities   Rising air passenger traffic and high cost associated with aircraft development
  Key Market Drivers

  • Growing air passenger traffic.
  • Stringent government regulations pertaining to aircraft and passenger safety.
  • Development of new airports.
  • The high cost of aircraft repair


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    Frequently Asked Questions (FAQ) :


    Aircraft insurance market can expand at 5.77% CAGR by 2026.

    By 2026, 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.