How Big Is the Aviation Insurance Market | Trends 2031

Q: How big is the aviation insurance market size?

The aviation insurance market is projected to reach USD 7.9 billion by 2031.

Q: What is the CAGR of the aviation insurance market during the forecast period?

The aviation insurance market is expected to grow at a CAGR of 7.7% during forecast period.

Q: What types of aviation insurance are commonly offered?

Hull insurance, passenger liability, third-party liability, and ground risk hull insurance are the most commonly offered coverages.

Q: What role does technology play in the aviation insurance market?

AI, big data, and IoT are used for risk modeling, dynamic pricing, claims automation, and fraud prevention.

Q: What is the impact of rising drone usage on the market?

The surge in drone operations across commercial and defense sectors has significantly increased demand for UAV-specific insurance policies.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

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Code: MTA5432

Publication Date: Jul 2025

How big is the aviation insurance market?

According to 6Wresearch internal database and industry insights, the Global Aviation Insurance Market was valued at approximately USD 4.7 billion in 2024 and is projected to reach USD 7.9 billion by 2031. The market is expected to grow at a CAGR of 7.7% during the forecast period.

This growth is driven by the expansion of air traffic, rising aircraft deliveries, increasing fleet modernization, and the demand for risk mitigation in airline operations. Furthermore, increased insurance adoption is being prompted by regulatory compliance as well as new risks posed by UAVs and aircraft technologies.

Key Growth Factors of the Aviation Insurance Market

Expanding commercial aviation and the size of the fleet
Liabilities have increased, and third-party risk coverage is required.
Growing demand for insurance for unmanned aerial vehicles (UAVs)
Mandatory adherence to aviation safety regulations
Growth in leasing services and aerospace manufacturing
Big data and AI integration for risk analysis and underwriting

Aviation Insurance Market Trends

There is a growing demand for customizable insurance policies tailored to specific aircraft operations. Usage-based insurance and digital underwriting models are gaining momentum. Increasing adoption of drone insurance coverage and space-related insurance policies are broadening the market scope. Insurers are leveraging AI for claims assessment and fraud detection. The reinsurance segment is also seeing renewed attention due to increased exposure risks.

Emerging Developments in the Aviation Insurance Market

With the rise of urban air mobility (UAM) and eVTOL aircraft, insurers are developing innovative policies. Parametric insurance and blockchain-enabled contracts are being explored for faster settlements. Insurtech platforms are transforming policy issuance and renewals. Advanced simulation models are being used to assess risk profiles for new aircraft technologies.