About Aerospace Insurance
Aerospace insurance, as covered in this report, encompasses the insurance policies designed for airlines, airports and their operations, as well as other aviation service providers. Aerospace is one of the biggest sectors worldwide responsible for the conveyance of a growing number of passengers and cargo.
Technavio’s analysts forecast the global aerospace insurance market to decline at a CAGR of -0.37% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global aerospace insurance market for 2016-2020. To calculate the market size, the report considers the revenue generated from the sales of aerospace insurance.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Aerospace Insurance Market 2016-2020
Technavio recognizes the following companies as the key players in the global aerospace insurance market: Allianz, American International Group (AIG), Aon, Hallmark Aerospace Insurance Managers, Marsh, and Old Republic Aerospace
Other Prominent Vendors in the market are: Arthur J. Gallagher & Co, Avion Insurance, Global Aerospace, Hiscox London Market, Wells Fargo, Willis Towers Watson, and XL Catlin
Commenting on the report, an analyst from Technavio’s team said: “Aviation insurance covers liabilities originating from ground handling, passenger injuries, delays, baggage liability, injuries because of accidents, and aviation product liability. The premium paid depends on the size of operations in an airport, air traffic data, and the number of airlines using the services of an airport. As a result of an increase in the number of airports, demand for ground handling, and aircraft fueling, aviation product liabilities will also increase, which can lead to two or more insurers covering business segments of an airport during the forecast period.”
According to the report, the soft market conditions in the global aerospace insurance market are expected to get a push from the establishment of new airports that will need services such as ground handling. Recently, with the development of smart airports, a number of automated systems have been implemented for passengers who prefer self-service. These automated systems are usually deployed across the airport facilities, from check-in kiosks to baggage handling systems.
Further, the report states that lack of awareness about insurance as a protection tool and inadequate details about the types of insurance products pose a major threat to the market. This often keeps potential clients away, which is one of the primary reasons for the slow growth of the market. The insurance service providers usually offer services for mid- to long-term period. Thus, the customer tends to avoid investing in such policies in a market as volatile as aerospace, where the profitability of the carriers is highly dependent on the cost of jet fuel. Also, the claim settlement process is a vital component of the whole process flow as it is crucial for the goodwill of the insurance company. Often, the insurance companies are not quicker in processing claims, particularly due to slow processing of documents through various public departments in a foreign country. This has reduced clients' trust in travel insurance products and has discouraged travelers and airline operators from investing in such products.
Allianz, American International Group (AIG), Aon, Hallmark Aerospace Insurance Managers, Marsh, Old Republic Aerospace, Arthur J. Gallagher & Co, Avion Insurance, Global Aerospace, Hiscox London Market, Wells Fargo, Willis Towers Watson, XL Catlin.