Report Id: SNS/A&D/2407 | July 2022 | Region: Global | 129 Pages
Report Scope & Overview:
Aircraft Insurance Market Size was valued at USD 12.52 billion by the end of 2022, and is estimate to reach USD 15.95 billion by 2030, with a growing healthy CAGR of 3.07% during the forecast period 2023-2030.
Aviation insurance is a non-life insurance policy that often covers physical damage to the aircraft as well as legal liabilities stemming from its ownership and operation. Furthermore, specialist insurance are offered to protect airport owners' legal liabilities deriving from the operation of hangars or the selling of various aviation items.These insurance are analogous to other kinds of liability contracts. Furthermore, the rise in air passenger traffic and the increase in government rules and regulations for passenger safety have a favourable impact on the expansion of the aviation insurance business. However, concerns such as high aviation insurance premiums and an increase in the frequency and expense of claims are constraining industry expansion.
On the contrary, growing spending on international airlines is likely to provide lucrative chances for market expansion during the forecast period.
Construction of New Airports
Rising Insurance Claim Frequency and Cost
Government norms and regulations for passenger safety are being strengthened.
The Asset Recovery Risk of Airline Bankruptcy
The number of travellers choosing air travel has expanded dramatically in the market.
Increase in the number of foreign carriers
THE IMPACT OF COVID-19
The COVID-19 epidemic has had a substantial impact on the growth of the aviation insurance sector, owing to huge, well-documented claims from aerospace Original Equipment Manufacturers (OEMs). Furthermore, since the COVID-19 impact, there has been a constant and large increase in passenger traffic. Government norms and regulations for passenger safety have also increased. Furthermore, as growing nations seek to expand their current airport terminals, globalisation has increased demand for airline services. Furthermore, COVID-19 has significantly impacted the travel business. For example, with about 19.2 million visitors in 2020, tourist arrivals in Spain fell by 78 percent.
This stifles the expansion of the aviation insurance business. However, in such circumstances, insurance companies can create fresh tailored offers for customers. Furthermore, the reduced airline activity had a significant influence on aviation insurance, as airline premiums are often assessed based on hours flown; global aviation premiums collected were anticipated to be 25% lower in 2019 than in 2018. Furthermore, claims for weather and ground impact damage, such as specific occurrences of hail and wind damage to sitting aircraft, continued to be filed. For example, in 2020, five airports in the United States were directly hit by tornadoes, resulting in $125 million in insured damage. As a result, a number of such advancements around the world are expected to present attractive potential for the growth of the aviation insurance market.
Because of the high hull values and high liability limitations connected with aviation insurance policies, most insurance providers must obtain insurance to help spread the risk, preventing any single claim from bankrupting a company. However, due to increased demand for travel and tourism with airlines and an expanding number of sky diving institutions, the general and business aviation insurance industry is predicted to grow the fastest in the future years.
Passenger liability insurance is predicted to gather a considerable aviation insurance market size during the forecast period, owing to severe government rules that make it mandatory to obtain passenger liability insurance to safeguard passengers from losses. Furthermore, businesses are concentrating their efforts on developing new chances for growth and income generation, which is growing the popularity for AI and advanced machine learning algorithms across industries. However, the in-flight insurance market is predicted to develop at the fastest rate throughout the projection period, owing to an increase in airline accidents caused by a variety of factors such as bird collision, bad weather, engine failure, and others.
The market is divided into two applications: private aircraft insurance and commercial aviation. Commercial Aviation leads the global Aircraft Insurance Market and is expected to grow at the quickest rate over the estimated period. The market is expected to grow due to increased commercial aircraft development to accommodate rising air passenger traffic. Among these, the passenger liability industry is likely to grow the fastest over the forecast period.
The market is divided into three segments based on end user industry: service providers, airport operators, and others. Airport operators have a monopoly on the market. The development of smart airports in countries like as China and India, greater airport refurbishment activities, and the expensive cost of expanding airports are expected to drive the category's growth.
KEY MARKET PLAYERS
The Key Players included are Allianz Corporate & Specialty, Willis Towers Watson, STARR International company, Arthur J. Gallagher & Co., Marsh LLC., American International Group, Chubb, AXA, Munich Re & Others.
KEY MARKET SEGMENTS:
Segment 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
Segment by Applications
Commercial Aviation & Business
Segment by End User
Aircraft Product Manufacturers
Individual General Aviation Aircraft Operators
Because of the existence of significant insurance carriers such as Berkshire Hathaway Inc. and American International Group, Inc., the North American region was expected to dominate the industry. Furthermore, due to the presence of important aircraft manufacturers such as Airbus SAS in the region, the European region is expected to drive the Aircraft Insurance Market.
Aside from that, the Asia-Pacific regional market is expected to grow at the fastest rate during the study period. This region is growing as a result of increased air passenger traffic in nations such as India and China. as well as
The Middle East Africa region is driving market expansion due to the increased development of new airports in countries such as the UAE and the region's growing manufacturing of UAVs. Furthermore, aircraft OEMs such as Embraer SA contribute to the growth of the Aircraft Insurance Market in the rest of the world.
Rest of Europe
Rest of Asia-Pacific
The Middle East & Africa
Rest of Middle East & Africa
Rest of Latin America
|Market Size in 2022||US$ 12.52 Billion|
|Market Size by 2030||US$ 15.95 Billion|
|CAGR||CAGR of 3.07% From 2023 to 2030|
|Report Scope & Coverage||Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook|
|Key Segments||• 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 Applications (Commercial Aviation & Business, General Aviation)
• By End User (Airlines, Airports, Aircraft Product Manufacturers, Leasing Companies, Ground Operators, Individual General Aviation Aircraft Operators, & Others)
|Regional Analysis/Coverage||North America (USA, Canada, Mexico), Europe
(Germany, UK, France, Italy, Spain, Netherlands,
Rest of Europe), Asia-Pacific (Japan, South Korea,
China, India, Australia, Rest of Asia-Pacific), The
Middle East & Africa (Israel, UAE, South Africa,
Rest of Middle East & Africa), Latin America (Brazil, Argentina, Rest of Latin America)
|Company Profiles||Allianz Corporate & Specialty, Willis Towers Watson, STARR International company, Arthur J. Gallagher & Co., Marsh LLC., American International Group, Chubb, AXA, Munich Re & Others.|
|DRIVERS||• Construction of New Airports
• Rising Insurance Claim Frequency and Cost
|RESTRAINTS||• Government norms and regulations for passenger safety are being strengthened.
• The Asset Recovery Risk of Airline Bankruptcy
Frequently Asked Questions (FAQ) :
Table of Contents
1.1 Market Definition
1.3 Research Assumptions
2. Research Methodology
3. Market Dynamics
4. Impact Analysis
4.1 COVID-19 Impact Analysis
4.2 Impact of Ukraine- Russia war
4.3 Impact of ongoing Recession
4.3.2 Impact on major economies
220.127.116.11 United Kingdom
18.104.22.168 South Korea
22.214.171.124 Rest of the World
5. Value Chain Analysis
6. Porter’s 5 forces model
7. PEST Analysis
8. Aircraft Insurance Market Segmentation, by Type
8.1 Public Liability Insurance
8.2 Passenger Liability Insurance
8.3 Combined Single Limit (CSL)
8.4 Ground Risk Hull (Motion) Insurance
8.5 Ground Risk Hull (Non-Motion) Insurance
8.6 Hangar and Ground Support Equipment Insurance
8.7 In-Flight Insurance and Umbrella Insurance
9. Aircraft Insurance Market Segmentation, by Applications
9.1 Commercial Aviation & Business
9.2 General Aviation
10. Aircraft Insurance Market Segmentation, by End User
10.3 Aircraft Product Manufacturers
10.4 Leasing Companies
10.5 Ground Operators
10.6 Individual General Aviation Aircraft Operators
11. Regional Analysis
11.2 North America
11.3.6 The Netherlands
11.3.7 Rest of Europe
11.4.2 South Korea
11.4.6 Rest of Asia-Pacific
11.5 The Middle East & Africa
11.5.3 South Africa
11.6 Latin America
11.6.3 Rest of Latin America
12. Company Profiles
12.1 Allianz Corporate & Specialty
12.1.2 Products/ Services Offered
12.1.3 SWOT Analysis
12.1.4 The SNS view
12.2 Willis Towers Watson
12.3 STARR International company
12.4 Arthur J. Gallagher & Co.
12.5 Marsh LLC.
12.6 American International Group
12.9 Munich Re
13. Competitive Landscape
13.1 Competitive Benchmarking
13.2 Market Share Analysis
13.3 Recent Developments
An accurate research report requires proper strategizing as well as implementation. There are multiple factors involved in the completion of good and accurate research report and selecting the best methodology to compete the research is the toughest part. Since the research reports we provide play a crucial role in any company’s decision-making process, therefore we at SNS Insider always believe that we should choose the best method which gives us results closer to reality. This allows us to reach at a stage wherein we can provide our clients best and accurate investment to output ratio.
Each report that we prepare takes a timeframe of 350-400 business hours for production. Starting from the selection of titles through a couple of in-depth brain storming session to the final QC process before uploading our titles on our website we dedicate around 350 working hours. The titles are selected based on their current market cap and the foreseen CAGR and growth.
The 5 steps process:
Step 1: Secondary Research:
Secondary Research or Desk Research is as the name suggests is a research process wherein, we collect data through the readily available information. In this process we use various paid and unpaid databases which our team has access to and gather data through the same. This includes examining of listed companies’ annual reports, Journals, SEC filling etc. Apart from this our team has access to various associations across the globe across different industries. Lastly, we have exchange relationships with various university as well as individual libraries.
Step 2: Primary Research
When we talk about primary research, it is a type of study in which the researchers collect relevant data samples directly, rather than relying on previously collected data. This type of research is focused on gaining content specific facts that can be sued to solve specific problems. Since the collected data is fresh and first hand therefore it makes the study more accurate and genuine.
We at SNS Insider have divided Primary Research into 2 parts.
Part 1 wherein we interview the KOLs of major players as well as the upcoming ones across various geographic regions. This allows us to have their view over the market scenario and acts as an important tool to come closer to the accurate market numbers. As many as 45 paid and unpaid primary interviews are taken from both the demand and supply side of the industry to make sure we land at an accurate judgement and analysis of the market.
This step involves the triangulation of data wherein our team analyses the interview transcripts, online survey responses and observation of on filed participants. The below mentioned chart should give a better understanding of the part 1 of the primary interview.
Part 2: In this part of primary research the data collected via secondary research and the part 1 of the primary research is validated with the interviews from individual consultants and subject matter experts.
Consultants are those set of people who have at least 12 years of experience and expertise within the industry whereas Subject Matter Experts are those with at least 15 years of experience behind their back within the same space. The data with the help of two main processes i.e., FGDs (Focused Group Discussions) and IDs (Individual Discussions). This gives us a 3rd party nonbiased primary view of the market scenario making it a more dependable one while collation of the data pointers.
Step 3: Data Bank Validation
Once all the information is collected via primary and secondary sources, we run that information for data validation. At our intelligence centre our research heads track a lot of information related to the market which includes the quarterly reports, the daily stock prices, and other relevant information. Our data bank server gets updated every fortnight and that is how the information which we collected using our primary and secondary information is revalidated in real time.
Step 4: QA/QC Process
After all the data collection and validation our team does a final level of quality check and quality assurance to get rid of any unwanted or undesired mistakes. This might include but not limited to getting rid of the any typos, duplication of numbers or missing of any important information. The people involved in this process include technical content writers, research heads and graphics people. Once this process is completed the title gets uploader on our platform for our clients to read it.
Step 5: Final QC/QA Process:
This is the last process and comes when the client has ordered the study. In this process a final QA/QC is done before the study is emailed to the client. Since we believe in giving our clients a good experience of our research studies, therefore, to make sure that we do not lack at our end in any way humanly possible we do a final round of quality check and then dispatch the study to the client.