Kathmandu. The Asia Pacific aviation insurance market is projected to expand the fastest from 2022 to 2032 with a compound annual growth rate (CAGR) of 8.7 per cent. Which will be mainly derived from industrial expansion and increasing aviation activity in China and India.
According to Allied Market Research, the global aviation insurance market is expected to grow from $4.1 billion in 2022 to $7.1 billion by 2032. Which is a compound annual growth rate of 5.9 percent.
Passenger liability insurance led the market in 2022. That’s more than one-third of the total income. Which was supported by regulatory orders requiring coverage for passenger-related damage.
Meanwhile, aviation insurance is expected to register its highest compound annual growth rate of 8.6 per cent by 2032 due to increased accident risk associated with weather, mechanical breakdown and other factors.
According to the type of production, the airline segment achieved the largest market share in 2022. Which was driven by the growing demand for flexible insurance to suit airline specific risks.
However, with insurance companies adopting advanced technologies to better assess and value complex aerospace risks, the aerospace segment is poised to grow the fastest with an estimated compound annual growth rate of 9 per cent.
Commercial aviation insurance dominates in terms of demand. In 2022, this insurance represented more than half of the market. Because it includes higher prices and liability limits.
However, the general and commercial aviation insurance segment is expected to grow the fastest at 8 per cent due to rising travel demand and increased activities such as skydiving.
