Acquisitions Like That of Aerosure by Willis Towers Watson to Drive the Growth of the Global Aviation Insurance Market

Aviation insurance is insurance coverage that covers hill losses, liability for injured passengers, third-party and environmental damage that can be potentially caused by aircraft accidents. The aviation industry is vulnerable to a number of accidents, risks, and threats, and hence this specialized insurance protects and covers losses against property destruction, cargo loss, personal injury, and others. Aviation insurance policies differ distinctively depending upon the areas of transportation, and there may be certain limits and clauses specific to particular aviation insurance that people might have to adhere to.

Forecast Analysis of the Global Aviation Insurance Market

Surging investment in technology coupled with the growing prevalence of smart airports across the globe is expected to drive the growth of the market during the forecast period. In addition, availability of low insurance premium rates among policyholders is further predicted to bolster the growth of the aviation insurance market during the forecast period. Moreover, significant increase in the standard of living among people has enabled them to opt to travel by aircraft. This factor is expected to create immense opportunities for the growth of the market during the forecast period. However, the lack of awareness about aviation insurance is expected to impede the growth of the aviation insurance market during the forecast period.

According to the report published by Research Dive, the global aviation insurance market is expected to garner a revenue of $6,326.30 million by 2028, growing exponentially at a CAGR of 5.20% during the forecast period 2021-2028. The major players of the market include London Aviation Underwriters, Inc., AXA Xl, Starr Aviation Insurance, American International Group Inc, Great American Insurance Company (American Financial Group), USAIG, Avion insurance, Allianz, Marsh LLC, ARTHUR J. GALLAGHER & CO., and many others.

Key Developments

The key companies operating in the industry are adopting various growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, which is subsequently helping the global aviation insurance market to grow exponentially.

In December 2021, Willis Towers Watson, a leading global advisory, broking and solutions company providing a suite of aviation insurance broking solutions to service the insurance and risk needs of the aviation industry, acquired Aerosure, a leading aviation industry specialist, focused on the Australia, New Zealand and Pacific Island region, in order to create great opportunities in providing additional services and solutions to clients throughout Asia and Australasia.

In October 2021, Tata AIG General Insurance Co. Ltd., an Indian general insurance company and a joint venture between the Tata Group and American International Group (AIG), announced the launch of its Remotely Piloted Aircraft System (RPAS) Insurance. It is a comprehensive product that covers both Hull and Third-Party Liability risks faced by drone owners and operators. They also provide discretionary coverage for BVLOS operations, night flying, data loss liability, and others.

In December 2020, Sompo International Holdings Ltd., a Bermuda-based specialty provider of property and casualty insurance and reinsurance, announced the acquisition of W. Brown & Associates Insurance Services, the aviation industry’s most dynamic and reputable source of general aviation insurance products and services for both airborne and ground-based exposures, in order to strengthen Sompo International’s presence in the global aviation insurance market.

COVID-19 Impact on the Market

The outbreak of coronavirus has had a negative impact on the growth of the global aviation insurance market, owing to the prevalence of lockdowns in various countries across the globe. The entire aviation industry experienced a devastating blow due to the stringent travel restrictions imposed by the government, in order to curb the spread of the virus during the pandemic. Thus, redundant lockdowns, irregular travel bans, and limited passenger capacity further aggravated the impact of COVID-19 on the market.

Most Profitable Region

The North America region is expected to dominate the market, and generate a revenue of $2,312.30 million during the forecast period. Increasing number of aircraft procurements taking place in this region is expected to drive stimulate the growth of the market. In addition, growing government investment in R&D, especially in the defence sector is further anticipated to accelerate the growth of the regional aviation insurance market during the forecast period.