Technavio’s latest report, Aerospace Insurance Market Analysis, predicts that the global aerospace insurance market will expand by USD 819.3 million from 2024 to 2028. That’s a CAGR of 4.48%. This is driven by the expansion and construction of new airports and a notable shift towards non-airline aviation services like charter flights.
Cyber Liability Insurance
One significant trend is the growing need for cyber liability insurance within the aerospace sector. With technology integral to aerospace operations, the industry increasingly requires specialized coverage to mitigate risks associated with digital threats. This need has contributed to the overall growth and diversification of aerospace insurance offerings.
The aerospace industry’s reliance on digital technology underscores the importance of cyber insurance. Critical systems such as air traffic control, flight navigation, and onboard avionics depend heavily on sophisticated software and connectivity. Integrating Internet of Things (IoT) devices for predictive maintenance and real-time monitoring of aircraft health further amplifies the risk of cyberattacks. These technological dependencies make robust cyber liability insurance necessary to protect against potential disruptions and financial losses.
Several Challenges
Technavio’s report highlights that the commercial airline industry faces several challenges, including lengthy security checks, cancellations, and delays, leading business travelers to seek alternative aviation services. This shift has driven up demand for aerospace insurance, particularly for corporate jet deliveries and flight cards.
Despite the rise in demand, the report highlights that insurance policy prices are decreasing, and organizations are making fewer claims. This has resulted in ample underwriting capacity, allowing insurers to explore new business classes. As the global economy recovers, underwriters ensure a broader range of risks, further fueling the market’s growth.
Technavio’s analysis provides detailed insights into market segmentation, geographic trends, and the competitive landscape, identifying key players like Allianz SE, Aon plc, AXA Group, and Berkshire Hathaway Inc.
The full report is available here.
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