Aviation Insurance Market Size, Share and Trends 2026 to 2035

Revenue, 2025

USD 5.32 Bn

Forecast Year, 2035

USD 9.66 Bn

CAGR, 2026 - 2035

6.15%

Report Coverage

Global

What is the Aviation Insurance Market Size in 2026?

The global aviation insurance market size was calculated at USD 5.32 billion in 2025 and is predicted to increase from USD 5.65 billion in 2026 to approximately USD 9.66 billion by 2035, expanding at a CAGR of 6.15% from 2026 to 2035.The market is driven by the rise in air travel, the growth in the number of aircraft, tougher regulations, and the need for comprehensive risk management services.

Key Takeaways

• North America led the aviation insurance market in 2025.
• Europe is expected to grow at the highest CAGR during the forecast period.
• By type, the hull and liability insurance platforms segment led the market in 2025.
• By type, the passenger legal liability insurance segment is expected to grow at the highest CAGR during the forecast period.
• By distribution channel type, the brokers segment dominated the market in 2025.
  By distribution channel type, the direct distribution channel segment is expected to grow at the highest CAGR between 2026 and 2035.
• By end user type, the airlines segment led the market in 2025.
• By end user type, the general aviation segment is expected to expand at the highest CAGR from 2026 to 2035.

What is the Aviation Insurance Market?

The aviation insurance market offers financial protection against risks that are associated with aircraft operations and the aviation industry as a whole. The market is for airlines, aircraft owners, leasing companies, airports, and other aviation stakeholders. This market insures against a broad range of risks such as physical damage to aircraft, liability for passengers and third parties, and loss of cargo. Aviation insurance also covers losses incurred from accidents, technical failures, natural disasters, and operational disruptions. This market also insures against risks associated with new technologies such as unmanned aerial systems.

How is AI contributing to the Aviation Insurance Market?

AI is enhancing the aviation insurance industry by allowing for more accurate risk analysis and quicker decision-making. It examines a vast amount of data from flight activities, weather conditions, maintenance records, and past occurrences to forecast possible risks and charge accurate premiums. AI is also simplifying claims settlement through automation and image-based damage assessment, cutting down on the time and human error involved in claims processing. Furthermore, AI also helps with fraud analysis, predictive maintenance analysis, and real-time monitoring to assist in preventing losses.

Aviation Insurance Market Trends

• Collaborations and Partnerships: Insurers are collaborating with brokers, reinsurers, and data companies to better understand complex aviation risks. These collaborations are helpful in pricing policies more accurately and providing customized coverage for airlines and new technologies. For instance, Marsh McLennan collaborated with American International Group (AIG) to develop customized aviation insurance programs that cover fleet, liability, and operational risks in different regions.
• Government Initiatives: Governments are enforcing stricter aviation safety regulations and promoting the modernization of fleets and infrastructure. This leads to a rising need for comprehensive insurance coverage and strict compliance among operators. For instance, the Federal Aviation Administration enforces safety and certification regulations that mandate airlines and operators to maintain comprehensive and compliant insurance coverage.
• Business Expansions: Insurance firms are entering new business lines such as drone insurance, sustainable aviation, and cyber risk protection. Insurance companies are expanding their offerings to new regions as air travel demand is rising worldwide. For instance, Allianz and Chubb are entering the aviation market with new insurance policies for drones and advanced aircraft.

Market Scope

Segmental Insights

Type Insights

Which Type Segment Dominated the Aviation Insurance Market in 2025?

The hull and liability insurance platforms segment dominated the market in 2025. The market growth of this segment is because it protects against the highest risk and valuable commodities and services. Airplanes are very expensive assets, and any damage or loss of these assets can cause a significant financial burden on the company. Liability insurance is a necessity in most parts of the world because it provides protection against claims for damage to third parties or passengers in the event of an accident.

The passenger legal liability insurance segment is expected to grow at the highest CAGR from 2026 to 2035. The market growth of this segment is due to a steady rise in global air passenger traffic. As the number of air passengers increases, the risk of legal liability associated with them, such as injury, loss of baggage, delay, and accidents, also increases substantially. This, in turn, is expected to fuel the demand for comprehensive liability insurance coverage among airlines and flight operators.

Distribution Channel Type Insights

Why Did the Brokers Segment Dominate the Aviation Insurance Market?

The brokers segment led the market in 2025. The market growth of this segment is because aviation risks are intricate and need expertise to formulate the appropriate insurance. Brokers assist airlines and operators in comparing different insurers, securing an ideal deal, and formulating tailored insurance policies according to their risk policies. Moreover, large-scale aviation insurance transactions involve different insurers and reinsurers across the globe. This segment facilitates these transactions, handling claims support and ensuring compliance with regulations.

The direct distribution channel segment is expected to grow at the highest CAGR during the forecast period. The market growth of this segment can be attributed to rising digitalization in the aviation insurance industry. The insurance companies are leveraging the internet to reach their customers directly, making it easier for them to purchase, renew, and manage policies. Moreover, direct distribution enables insurance companies to cut down on the costs associated with intermediaries and have better control over customer relationships. The market growth of this segment is further driven by the rising use of digital systems by airlines and the need for faster policy decisions.

End User Type Insights

Why Did the Airlines Segment Dominate the Aviation Insurance Market?

The airlines segment dominated the market in 2025. The market growth of this segment is due to a large number of high value aircrafts and the transportation of a significant number of passengers by airlines. This increases their exposure to risks such as accidents, liability claims, and flight disruptions, thus increasing the need for comprehensive insurance coverage. Airlines are required to adhere to strict regulations and have to purchase various types of insurance, such as hull insurance, passenger liability insurance, and third-party insurance.

The general aviation segment is expected to expand at the highest CAGR during the forecast period. The market growth of this segment is driven by the rising adoption of private jets, charter flights, and business aviation. The growing need for flexible and time-effective travel, particularly among businesspersons and wealthy individuals, is also fueling an increase in flight adoption. Furthermore, the rise in pilot training, air tourism, and the use of smaller aircraft for specialized purposes is also broadening the risk base.

Regional Insights

North America Aviation Insurance Market Size and Growth 2026 to 2035

The North America aviation insurance market size is estimated at USD 2.39 billion in 2025 and is projected to reach approximately USD 4.40 billion by 2035, with a 6.29% CAGR from 2026 to 2035.

What Made North America the Leading Region in the Aviation Insurance Market?

North America dominated the aviation insurance market in 2025. The market growth in this region is because of its mature aviation sector with a large number of aircraft in operation. This region has a prominent presence of commercial airlines and cargo carriers, which results in a substantial demand for insurance. In addition, North America has strict regulations, advanced safety measures, and high liability, which drives the demand for comprehensive insurance policies. The market growth in this region is further driven by the presence of well-established insurance, reinsurance, and broking companies with early adoption of advanced technology.

U.S. Aviation Insurance Market Size and Growth 2026 to 2035

The U.S. aviation insurance market size is calculated at USD 1.80 billion in 2025 and is expected to reach nearly USD 3.32billion in 2035, accelerating at a strong CAGR of 6.31% between 2026 and 2035.

U.S Aviation Insurance Market Analysis

The U.S. leads the market in North America because of the size and diversity of its aviation operations. This country has a mature aviation ecosystem comprising commercial flights, business aircraft, flight training organizations, and domestic air transport networks. The U.S. is a major international center for aviation financing, leasing, and insurance services. The market growth in this country is further driven by innovation in the aerospace industry and the adoption of modern technologies in the insurance business.

What Made Europe the Fastest-Growing Region in the Aviation Insurance Market?

Europe is expected to grow at the highest CAGR during the forecast period. The market growth in this region can be attributed to air traffic from both Western and Eastern nations. Rising passenger traffic, as well as the development of low-cost carriers and regional airlines, is fueling the demand for insurance protection. This region is experiencing robust growth in the sustainable aviation sector, including investments in fuel-efficient aircraft and innovative technologies. The market growth in Europe is further driven by changing regulatory norms, international aviation operations, and the growing adoption of sophisticated risk management systems.

U.K Aviation Insurance Market Trends

In Europe, the U.K is at the forefront of the aviation insurance market because of the significant presence of aviation insurers and brokers in the country. This country is a hub where intricate aviation risks are structured and placed, thus supporting both regional and international clients. This country has a well-developed financial infrastructure and a long history of being a hub for specialty insurance.

Moreover, its robust connectivity with the international aviation market and a large number of insurance transactions strengthen its leading position in the European market.

Asia Pacific Aviation Insurance Market Analysis

The Asia Pacific market is expected to grow at a significant CAGR during the forecast period due to the rapid growth of fleets in countries such as China and India, as well as increased passenger travel due to the growing middle class. The growing air traffic and increasing number of fleets are driving the demand for hull, liability, and passenger insurance. Government spending on airport development is also contributing to the growth of the market. The market growth in this region is further driven by the rising need for insurance, driven by regulatory demands and new insurance offerings such as drone and UAV insurance.

China Aviation Insurance Market Trends

China leads the market in the Asia Pacific due to expansion in its aviation fleet and its role as a hub for aircraft production and leasing. China is home to prominent domestic airlines and budget carriers, thereby fueling the demand for specialized insurance products. The rapid adoption of digital aviation technology, such as AI-powered flight operations and predictive maintenance, is also giving rise to new risk protection requirements. China's emphasis on regional aviation routes and the inclusion of smaller airports into the country's overall network is also expanding insurance opportunities.

Aviation Insurance Market Companies

• AXA XL
• Munich Re Specialty
• Travers & Associates Aviation Insurance Agency, LLC
• USAIG
• Starr International Company, Inc
• Global Aerospace, Inc.
• Chubb
• EAA Company Ltd
• Tokio Marine HCC
• BWI Aviation Insurance
• American International Group, Inc
• Swiss RE
• HDI Global
• Beazley
• Hallmark Financial Services

Segments Covered in This Report

By Type

• Hull and Liability Insurance
• Loss of License Insurance
• Passenger Legal Liability Insurance
• Others (Aircraft War and Peril Insurance)

By Distribution Channel Type

• Brokers
• Direct
• Digital
• Others

By End User Type

• Airlines
• Aerospace
• General Aviation
• Others (Contingent, Government)

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa