From 2022–2027, the aerospace insurance industry is predicted to expand by $763.67 million. The market is anticipated to expand at a CAGR (compound annual growth rate) of 4.36% over the predicted time period.
Technavio has just published research that classifies this market according to end-user sectors like service providers and airport operators, as well as kinds including in-flight insurance, public liability insurance, passenger liability insurance, and others. The market’s geographic reach includes the Americas, Europe, Asia-Pacific, Africa, and the Middle East and North Africa.
A few of the major companies in this industry are: Ace Aviation, Allianz SE, American Financial Group, AIG, Aon, Arthur J. Gallagher and Co., Avion Insurance Agency, AXA Group, Berkshire Hathaway, BWI Aviation Insurance Agency, Chubb, Global Aerospace Underwriting Managers, Hallmark Financial Services, London Aviation Underwriters, Marsh and McLennan Companies, Munich Reinsurance, Starr International, Tokio Marine Holdings, Wells Fargo and Co., and WTW.
Forecasts for 2023 indicate a 4.1% year-over-year increase for the market, which is also known for its fragmented structure.
The increasing number of airports and their continuous development are major factors fueling this market growth. New terminals are springing up all across the airline sector as a result of the unprecedented increase in air passenger volume. The construction of new airports is a top priority in the Asia-Pacific, MENA, and African regions in order to alleviate traffic congestion and meet the increasing passenger numbers.
A noteworthy development in the aerospace insurance sector is the expansion of aviation services outside airlines. Increased security checks, frequent cancellations, delays, and route limits are just a few of the problems that commercial airlines are now facing. These issues, which are more obvious at important hubs, are affecting the commercial aviation insurance industry.
Nevertheless, the industry is confronted with a major obstacle in the form of inadequate knowledge and postponed aviation insurance services. Insurance companies often provide coverage for medium to long periods of time, but customers have lost faith in their travel insurance due to the lengthy processing times of claims, particularly those involving several offshore utilities. Airline operators and travelers have lowered their investment in travel insurance services due to the loss of confidence, which has affected demand.
