Asia-Pacific aviation insurance to grow 8.7% through 2032

Globally, the market is projected to accumulate $7.1b by then.

The Asia-Pacific aviation insurance market is projected to post the fastest expansion at 8.7% compound annual growth rate (CAGR) from 2022 to 2032, led by industrial expansion and increasing aviation activity in China and India.

Globally, the market is projected to grow from $4.1b in 2022 to $7.1b by 2032, at a CAGR of 5.9%, according to Allied Market Research.

Passenger liability insurance led the market in 2022, accounting for over one-third of total revenue, supported by regulatory mandates requiring coverage for passenger-related damages. 

Meanwhile, in-flight insurance is expected to record the highest CAGR of 8.6% through 2032, driven by increasing accident risks linked to weather, mechanical failure, and other factors.

By product type, the airlines segment held the largest market share in 2022, due to growing demand for flexible insurance tailored to airline-specific risks. 

However, the aerospace segment is set to grow the fastest, with a projected CAGR of 9.0%, as insurers adopt advanced technologies to better assess and price complex aerospace risks.

Commercial aviation insurance dominated by application, representing over half the market in 2022, due to the high values and liability limits involved. 

The general and business aviation segment, however, is forecast to grow the fastest at 8.0%, supported by rising travel demand and growth in activities like skydiving.