Aerospace Insurance Market Outlook :
Aerospace insurance is specifically crafted insurance coverage for the aerospace industry and risks associated with the aerospace industry. Aerospace insurance covers general liability coverage intended for passenger and cargo airlines and losses induced by war or terrorist activities, physical damage, passenger, and third-party liability. A pre-determined premium is charged by the insurance provider from the aircraft owners at regular intervals that differs on the basis of number of airlines used by the airport services, magnitude of the operations, and air traffic data. Moreover, aerospace insurance shelters the aircraft owners and its users financially and legally in case of accidents.
COVID-19 scenario analysis
Aerospace insurance market observed sluggishness in processing of overseas documents due to COVID-19 regulations implemented on trade and transport.
Grounding of aircraft and temporary closure of airports globally owing to outbreak of COVID-19 negatively impacted the aerospace insurance market financially as the clients faced financial crisis.
Increase in insurance premium by the insurers due to increase in claims during pandemic adversely affected the growth of the aerospace insurance market.
COVID-19 pandemic led to significant drop in air travel traffic, which further lowered the revenue of passenger insurance companies.
Top impacting factors: market scenario analysis, trends, drivers, and impact analysis
Expansion of the aviation industry and rise in smart airport development are the factors that drive the growth of the aerospace insurance market. However, delayed services and lack of cognizance hamper the market growth. Contrarily, decline in rate of insurance premium; financial safety for insurance buyers against accidents; and increase in investigative activities by aircraft, drones, and spaceships are anticipated toprovide lucrative opportunities for the expansion of the aerospace insurance market.
The aerospace insurance market trends are as follows:
Expansion of the aviation industry
Aerospace offers host of opportunities for several sectors, including exploration, communication, and transportation. Ease in safe transportation, better communication, and navigation aids in the growth of aviation industry. For instance, in 2017, Dubai tested Autonomous Air Taxi (AAT), which is electrically powered and can cruise at 31 mph with a maximum airspeed of 62mph and maximum flight time of 30 minutes. Development of the aviation industry assists contributes toward the growth of the aerospace insurance market.
Smart airport development
Smart airports utilize numerous automated technologies such as automated baggage handling systems and self-check-in counters. Emerging economies and developed nations are in the process of modernization and expansion of new as well as existing airports to cater to the increasing demand for air transport. For instance, in July 2017, LG deployed airport cleaning robots and airport guide robots at Incheon International Airport (IIA) (biggest airport in South Korea) on a trial basis. These robots will provide assistance and information to the travelers and will keep the floors clean. Such developments in smart airports to increase efficiency of airports are expected to boost the growth of aerospace insurance market.
Key benefits of the report:
- This study presents the analytical depiction of the aerospace insurance industry along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global aerospace insurance market share.
- The current market is quantitatively analyzed to highlight the aerospace insurance market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed aerospace insurance market analysis depending on competitive intensity and how the competition will take shape in coming years.
Questions answered in the aerospace insurance market research report:
- Which are the leading players active in the aerospace insurance market?
- What are the current trends that will influence the market in the next few years?
- What are the driving factors, restraints, and opportunities of the market?
- What are the projections for the future that would help in taking further strategic steps?
Aerospace Insurance Market Report Highlights
By Insurance Type
By End User
Key Market Players
Hiscox London Market, Avion Insurance, Willis Towers Watson, Allianz SE, AXA, Marsh Inc., Hallmark Financial Services Inc, Wells Fargo, Global Aerospace, American International Group