Aerospace Insurance Market Size, Share & Growth Analysis By End-Users (Service Provider, Operators, And Others), By Type (Combine Single Limit, Passenger Liability Insurance, And In-Flight Insurance) And Regional Forecast, 2021-2027

Report Summary

Key Market Insights:

The global aerospace insurance market size is expected to rise at USD 12.12 Billion by 2027, recording a CAGR of 6.5%. At the present, the aerospace industry is undergoing moderate growth owing to the slowdown of the economy and lack of transparency in the airline industry.

Aerospace insurance offer insurance coverage to the aircraft operation and is much different from general insurance, or life insurance. This is specifically designed for manufacturers and airport service providers. The aerospace insurance market is experiencing a robust demand due to increase in number of airports, since aerospace insurance providers are constantly upgrading their policies pertaining to insurance. The policies enable airport service providers to claim compensation at airports. Overall, the airport is one of the leading sector and accountable for air transportation and goods movement on a large scale.

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Drivers:

Emergence of New Airports and Adoption of Technology is likely to Spur the Market Growth

The aerospace insurance industry is witnessing emergence of new airports all across the world. This is likely to augment the need for insurance services. Also, the deployment of automated payment systems and robotics are likely to encourage market developments. This in turn has created liabilities for airport authorities. Therefore, insurance covers the maintenance and repairs for these arrangements on a scaling basis. However, as airports grow more complex in their operations, it is more likely that the incidences such as delayed flights, lost baggage, and loose handling of passenger accessories, are expected to occur. Therefore, insurance providers are now broadening their functional scope and have begun to offer an all-round coverage to reduce consumer liabilities.

Restraints:

On the backdrop of Covid-19 pandemic, aircraft activities are highly limited and are operating with utmost safety. This has reduced the revenue influx and has increased the cost of operations. Moreover, government regulation and norms are likely to hamper the market growth in the forthcoming period. Increase in liabilities, and low increase in low performing airlines is much likely to result in closure of airlines. This is expected to limit the market growth in the aviation sector.

Opportunities:

At the moment, there is a huge demand for underwriters in the aviation industry

Segmentation:

The aerospace insurance market division include end-users and type of insurance. The division for end-user include service provider, operators, and others. Based on insurance type, the market include combine single limit, passenger liability insurance, and in-flight insurance.

End-Use Insights:

Operators are Expected to Remain Dominant

The operators in the aerospace insurance market are likely to dominate the market growth in the coming years attributing to high presence and procurement of insurance services. Growing investments are likely to enable operators to have an upper hand in the end-use category.

Type Insights:

In-flight Insurance for Passengers Dominates the Market Growth

The in-flight insurance for passenger segment is likely to dominate the market growth in the coming years attributing to the passenger safety and convenience. Flight passengers are also opting for in-flight insurance at a nominal charge. This has led the insurance industry to flourish in the aviation sector.

Regional Segmentation:

Based on regional segmentation, the aerospace insurance market segmentation comprises North America, South America, Europe, Asia Pacific, Middle-East, and Africa.

North America is a Growing Market

The U.S. is a fast growing market in terms of revenue share. Presence of various airline and consumer preference for insurance in the long duration flights is likely to encourage the market growth in the U.S. Moreover, the North America market exhibits lucrative opportunities in terms of consumer retention and service.

Asia Pacific and Europe are steadily emerging markets in the global space. This is due to the growing importance of insurance in the aviation industry. Moreover, the aviation sector in these markets are likely to adhere to introduce attractive plans for long flight passengers. This in turn is expected to propel the market growth.

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Key Players:

The key players in the aerospace insurance market report include Allianz SE, American International Group, Global Aerospace, Marsh Inc, China Life Insurance Company, Malayan Insurance, Wells Fargo, Avion Insurance, and Old Republic Aerospace. The industry players are are adopting mergers and acquisition method to augment their geographical presence and enhance the product base. Extensive use of social media, chatbots and other technological aspects are likely to reflect in generation of revenue streams through effective customer service. Insurance companies are likely to offer better prospects in the sphere of customer service and this has enabled the companies to leverage their brand.

List Of Key Companies Profiled:

• Allianz SE
• American International Group
• Global Aerospace
• Marsh Inc.
• China Life Insurance Company
• Malayan Insurance
• Wells Fargo
• Avion Insurance
• Old Republic Aerospace.