Aviation Insurance Market Report 2026

The aviation insurance market size has grown strongly in recent years. It will grow from $4.71 billion in 2025 to $4.97 billion in 2026 at a compound annual growth rate (CAGR) of 5.5%. The growth in the historic period can be attributed to growth in commercial aviation operations, expansion of global air traffic, rising aircraft fleet sizes, increasing regulatory insurance requirements, higher awareness of aviation risk management.

The aviation insurance market size is expected to see strong growth in the next few years. It will grow to $6.34 billion in 2030 at a compound annual growth rate (CAGR) of 6.2%. The growth in the forecast period can be attributed to increasing adoption of digital underwriting platforms, rising demand for coverage of unmanned aerial vehicles, expansion of sustainable aviation initiatives, growing complexity of aviation cyber risks, increasing customization of insurance coverage. Major trends in the forecast period include increasing adoption of data-driven risk assessment models, rising demand for tailored aviation insurance policies, expansion of cyber risk coverage for aviation systems, growing focus on sustainability-linked aviation insurance, enhanced integration of digital claims processing.

The increase in air passenger traffic is expected to drive the growth of the aviation insurance market in the coming years. Air passenger traffic refers to the total number of travelers using airports, including both arriving and departing passengers, and represents individuals transported by commercial airlines or private aircraft on domestic and international routes. As air passenger traffic rises, demand for airline operations also increases, which in turn heightens the need for aviation insurance to protect passengers, aircraft operators, and aircraft owners against potential aviation-related risks. For example, in December 2025, according to Eurostat, a Luxembourg-based statistical office of the European Union, the total number of air passengers reached 1.1 billion in 2024, reflecting an 8.3% increase from 973 million in 2023. Therefore, the growth in air passenger traffic is fueling the expansion of the aviation insurance market.

Major companies operating in the aviation insurance market are focusing on introducing liability-only insurance products to offer more affordable coverage options for aircraft owners and operators. Liability-only insurance is a type of policy that covers only the legal liabilities of the insured party in the event of accidents or damage to third parties, without covering damage to the aircraft itself. For instance, in September 2024, SkyWatch Inc., a Canada-based company, launched a liability-only insurance offering aimed at providing a cost-effective option for senior pilots. This solution allows pilots to retain essential liability protection while avoiding the higher costs associated with comprehensive coverage. The policy offers flexible coverage limits that can be adjusted based on individual needs and is accessible through SkyWatch’s online platform, which provides instant quotes to help pilots quickly evaluate coverage options and pricing.

In January 2025, Core Specialty Insurance Holdings Inc., a US-based specialty insurance and underwriting company, acquired London Aviation Underwriters, Inc. (LAU) for an undisclosed amount. Through this acquisition, Core Specialty sought to enhance and broaden its presence in the aviation and aerospace insurance market by adding specialized aviation underwriting expertise to its portfolio of specialty insurance offerings. London Aviation Underwriters Inc. is a US-based aviation insurance underwriter specializing in hull and liability coverage, along with other aviation-specific insurance solutions for general aviation clients.

Major companies operating in the aviation insurance market are Allianz SE, AXA SA, American International Group Inc., Chubb Ltd., USAA Inc.(United Services Automobile Association), Marsh LLC, Aon plc, Willis Towers Watson Public Limited, Arthur J Gallagher And Co., Tokio Marine HCC, AssuredPartners Inc., BWI (Berkshire Hathaway Specialty Insurance), Great American Insurance Company, Hallmark Financial Services Inc., AIG Aerospace Insurance Services Inc., Global Aerospace Inc., Starr International Company Inc., AOPA Insurance Services, Avion Express Insurance, Avemco Insurance Company, JS Johnson And Co. Ltd., Avion Insurance Agency Inc., JLT Specialty Ltd., Aviation Insurance Resources, Gallagher Aviation LLC, Ace Aviation Private Limited, Aerospace Insurance Managers Inc., Travers And Associates Inc.

Asia-Pacific was the largest region in the aviation insurance market in 2025. The regions covered in the aviation insurance market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the aviation insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The aviation insurance market includes revenues earned by entities by providing aircraft hull insurance, aviation liability insurance, aviation third-party liability insurance, cargo insurance, aviation product liability insurance, aircraft protection, death benefits, and aircraft and passenger security insurance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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