Global Aviation Insurance Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

Global Aviation Insurance Market Growth

As per the aviation insurance market analysis, claims for crash/collision-related incidents account for 63% of the total value of aircraft insurance claims, including events like hard landings, runway incidents, and bird strikes. They are closely followed by claims for defective product/faulty workmanship and natural disasters (including turbulence). Other incidents that significantly impact aviation insurance claims include travel issues like property damage, lost baggage, and slip and fall incidents, among others.

Electric Vertical Takeoff and Landing (eVTOL) are enhancing passenger travel experiences by ensuring sustainability and efficiency of operations. They are also performing a wide range of tasks including cargo transportation, firefighting, and medical evacuation. The annual industrial revenues from eVTOL sales are expected to increase from USD 1 billion in 2030 to USD 90 billion in 2050. This is expected to facilitate the aviation insurance market expansion as eVTOLs can face operational risks like mid-air collisions, loss of power, or foreign object damage during flight. The sensitive nature of its movements makes it vulnerable in dense urban areas for test flight, which is further expected to propel the market development in the coming years.

Key Trends and Developments

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Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Global Aviation Insurance Market Trends

Growth of GPS jamming incidents

Eastern European and Middle Eastern countries have reportedly witnessed a noticeable surge in the number of GPS spoofing incidents, which trick an aircraft’s flight management systems into indicating that the aeroplane is many miles off its destination. The number of GPS spoofing and jamming incidents has increased by over 40% from Q1 of FY-2023, indicating the robust demand for in-flight insurance solutions by aircraft carriers. This is one of the key aviation insurance market trends.

Growth of helicopter tourism

Over 2 million tourists annually participate in helicopter tours across the United States. The growth of high-ticket luxury tours and affordable travel destinations has enabled the domestic industry to generate annual revenues of over USD 500 million. As the government strengthens its safety standards for aircraft carriers, the aviation insurance market value is expected to record steady growth.

Global Aviation Insurance Industry Segmentation

Global Aviation Insurance Market Share

Based on region, the market is segmented into North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa. Over the forecast period of 2025-2034, Latin America and North America are expected to grow at a CAGR of 6.7% and 5.9%, respectively, due to the growth of domestic air traffic and rising number of runway incursion incidents. Moreover, the rising threat of cybersecurity incidents is driving the aviation insurance market growth.

Based on end use, the market is segmented into airport operators and service providers, among others. The demand for aviation insurance by aircraft operators is expected to dominate the market and increase at a CAGR of 6.9% between 2025 and 2034 amid growing attempts to minimise the risk of financial losses against damage to aircraft components.

Leading Companies in the Global Aviation Insurance Market

Major aviation insurance market players are expanding customised coverage options to meet diverse client needs. They are focusing on enhancing cyber risk policies to address growing technological vulnerabilities in aviation. Companies are also investing in advanced analytics and AI-driven risk assessment tools to optimise underwriting.

QBE Insurance Group Limited

QBE Insurance Group Limited was founded in 1886 and is headquartered in Sydney, Australia. It is an international insurance and reinsurance company that provides financial protection solutions for motorcycles, houses, caravans, boats, and healthcare expenses, among others.

London Aviation Underwriters, Inc.

London Aviation Underwriters, Inc. was founded in 1980 and is headquartered in Washington, United...

Aircraft Builders Council

Aircraft Builders Council was founded in 1954 and is headquartered in Minneapolis, United States....

American International Group, Inc.

American International Group, Inc. was founded in 1919 and is headquartered in New York, United S...

*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*

Other players included in the aviation insurance market report are HCC Insurance Holdings, Inc., Great American Insurance Group, AXA SA and XL Group Ltd, Lloyd’s, Arthur J. Gallagher & Co., Preferred Aviation, LLC, a DOXA Company, and among others.