Aviation Insurance Market By Type (In-flight insurance, Ground risk hull (non-motion) insurance, Ground risk hull (motion) insurance, Public liability insurance, Passenger liability insurance, and Third Party insurance), By End User (Airlines (Cargo Aviation and Passenger Aviation), Airports (Large, Medium, and Small), and Airline Product Manufacturers), and By Function (Cockpit Crew, Fuel & Oil, Equipment Insurance, Deprecation & Rentals, Maintenance & Overhaul, Landing Charges, En-route Charges, Station & Ground Costs, Cabin Crew & Passenger Services, Ticketing, Sales & Promotions, and General & Administrative) - Global Analysis & Forecast 2020-2030
Report ID : 372 | Published Date : Jul 2020 | Pages : 160 | Region : Global | Report Code : AT-16
Aviation Insurance Market Overview and Introduction
Aviation insurance is a specialized insurance, which has been formulated to provide coverage to the specific operations of an aircraft and other possible risks in aviation. The concept of aviation insurance has gained momentum only of late. A series of aircraft disasters such as the mysterious disappearance of Malaysia Airlines with over 200 passengers on board, have not only prompted more and more people to buy aviation insurance but have also increased the number of claims by a huge margin. As aircraft disasters continue and are on a rise, flying is being looked at as a very risky affair. This has led to a lot of fear and consequently the need for aviation insurance.
The global aviation insurance market is majorly driven by an upsurge in the demand for insurance with increasing number of airports all over the world. According to the Centre for Aviation, in 2019, USD 62,397.83 million were investmented in new airports. For instance, across the Irish Sea, Dublin Airport Authority (daa) commenced consultations on its USD1 billion investment program, which is projected to increase Dublin Airport’s capacity by 40 million passengers a year. For the development of smart airports, numerous automated systems have been implemented for passengers or travelers preferring self-services. These automated services are generally installed across airport facilities from check-in stands to baggage handling systems. Moreover, the insurance covers liabilities originating from passenger injuries, round handling, delays, injuries due to accidents, baggage liability, and aviation product liability. The increasing utilization of self-service technologies is also boosting the market growth. For instance, at the Miami International Airport, the beacon technology is currently being utilized to pinpoint every passenger’s location within a terminal. With a smartphone app, passengers are able to receive turn-by-turn directions to their gate or the closest amenity including bookstores, airport lounges, restaurants, and restrooms. An increase in travel & tourism is also propelling the market to grow. According to the U.S. Travel Association, domestic travel within the U.S. increased by 1.7% in 2019 whereas domestic & international travelers spent $1.1 trillion. However, privacy concerns regarding personal data among people may the hinder market growth to a certain extent.
The global aviation insurance market has been segmented into the following categories - type, end user, and function.
Aviation Insurance Market By Type
Based on type, the market can be segmented into in-flight insurance, ground risk hull (non-motion) insurance, ground risk hull (motion) insurance, public liability insurance, passenger liability insurance, and third party insurance. The ground risk hull (motion) insurance segment will dominate the market during the forecast period owing to the policy covering any physical loss/damage faced by the insured plane. It also protects the plane against total loss and disappearance, propelling the growth of this segment.
Aviation Insurance Market By End User
Based on end user, the market can be segmented into airlines, airports, airline product manufacturers, and others. The airline segment is further sub-categorized into cargo aviation, passenger aviation, and others. The airports segment is sub-divided into large, medium, & small. Airlines accounted for the largest market share owing to an increase in passenger numbers and the adoption of technologies, which are providing cost-effective and efficient services to airlines and a highly satisfying experience for passengers, thus propelling the growth of this segment.
Aviation Insurance Market By Function
Based on function, the market can be segmented into cockpit crew, fuel & oil, equipment insurance, deprecation & rentals, maintenance & overhaul, landing charges, en-route charges, station & ground costs, cabin crew & passenger services, ticketing, sales & promotions, general & administrative, and others. The fuel & oil segment accounted for the largest market share as they are the prominent costs in the airline expenditure.
Aviation Insurance Market By Region
Based on the region, the global aviation insurance market can be segmented into North America, Europe, Asia Pacific, and the Rest of the World (ROW). North America dominated the market share owing to the fact that North America has the highest number of airports globally, leading to higher adoption of the IoT technology for the smooth functioning of airports, contributing to the growth of the market. Moreover, the prescence of major players providing insurance solutions in the region are further contributing to the overall market growth in this region.
Aviation Insurance Market Prominent Players
Some of the key players operating in the global aviation insurance market include Allianz, Avion Insurance American International Group, Inc., Willis Towers Watson, AXA SA., Gallagher, Aon plc., MARSH LTD ., MNK Re Limited, Chubb, and others.