Aerospace Insurance Market Size, Share & Report [2033]

Aerospace Insurance Market Overview

The Aerospace Insurance Market size was valued at USD 1199.09 million in 2024 and is expected to reach USD 1612.18 million by 2033, growing at a CAGR of 3.3% from 2025 to 2033.

The aerospace insurance market plays a vital role in mitigating risks associated with aviation and space operations. In 2024, over 52,000 aircraft worldwide were covered under aerospace insurance policies, including 27,400 commercial aircraft, 15,600 private jets, and 9,000 cargo planes. The number of satellites insured increased to 6,300 globally, reflecting a sharp rise from 4,900 in 2022. The aerospace insurance market also extended to airport infrastructure, covering more than 1,200 airports globally under liability and property insurance. The commercial airline segment witnessed over 1,800 policy renewals linked to enhanced cyber threat protection. The demand for customized coverage plans also rose, with more than 9,400 unique policies underwritten for mission-specific requirements in 2023–2024. A total of 620 incidents related to mid-air technical failure or operational disruptions were reported in the past year, with insurance claim resolutions taking an average of 47 days. As of 2024, underwriters processed 23,000 active claims, with the majority linked to cargo mishandling, minor ground collisions, and in-flight damages. With increased reliance on unmanned aerial vehicles (UAVs), 58,000 drones were registered under aerospace insurance frameworks. This diversified portfolio underscores the evolving and essential role of aerospace insurance in modern aviation risk management.

Key Findings

Driver: Rising satellite deployments and commercial aviation expansion have increased the demand for tailored aerospace insurance policies.

Country/Region: North America leads the global aerospace insurance market, covering over 19,000 aircraft and 2,800 satellites.

Segment: Property insurance is the largest segment, with more than 28,000 policies active across aircraft and infrastructure assets.

Aerospace Insurance Market Trends

The aerospace insurance market has experienced major shifts in recent years due to technological advancements and heightened operational risks. In 2024, the total number of aerospace insurance policies exceeded 95,000, with commercial aviation accounting for 42,600 of them. There was a 31% increase in demand for cyber risk add-ons, driven by over 400 documented cyber threats targeting aviation infrastructure globally. Insurance providers offered specialized plans for space tourism, resulting in the issuance of 380 spaceflight passenger policies during 2023–2024. Drones and unmanned aerial systems (UAS) were the fastest-growing area, with more than 58,000 units insured. These policies included collision coverage, privacy liability, and damage from third-party interference. The logistics industry alone accounted for 19,200 drone insurance policies, primarily covering cargo deliveries and surveillance flights. Additionally, 11,500 drones in agriculture and forestry applications were insured against environmental and mechanical hazards. Space exploration continues to influence premium structuring. The number of geostationary satellites insured rose to 2,900, and low-Earth orbit (LEO) satellites accounted for 3,400 active insurance contracts. Space launch vehicle providers insured over 72 orbital launches in 2023, with policies extending to propulsion failures and debris impact incidents.

Airport operators also adopted robust risk management frameworks. In Europe, over 240 airports were insured for ground handling, fire risk, and airside operations. In Asia-Pacific, 160 airports updated their liability clauses to include public health-related delays and quarantine impacts. More than 1,000 insurers globally began including pandemic-specific clauses in new policy templates. Technological integrations shaped new policy models. Around 7,800 insured entities now use blockchain-based claim processing to speed up evaluations and settlements. These systems helped reduce processing times by 18%, with some insurers settling claims in as little as 21 days. Artificial intelligence was deployed in 4,300 instances for automated risk analysis and fraud detection. Parametric insurance models gained traction, particularly in space operations. In 2024, 140 satellite operators used predefined triggers like solar radiation levels and orbit altitude deviation to activate policy claims, simplifying payout mechanisms. Overall, the aerospace insurance market is transitioning from traditional static models to highly adaptive, data-driven frameworks designed to meet evolving risks.

Aerospace Insurance Market Dynamics

DRIVER

Rising commercial air traffic and satellite launches

As of 2024, over 52,000 manned aircraft and 58,000 unmanned aerial vehicles (UAVs) operated globally with active aerospace insurance. The launch of 72 space missions in 2023 alone, combined with 3,400 low-Earth orbit (LEO) satellite insurance contracts, has significantly increased demand for insurance coverage. Aviation passenger traffic exceeded 4.6 billion in 2023, pushing commercial airlines to seek broader liability and asset protection. The entry of 1,200 new commercial aircraft into service created fresh opportunities for insurance underwriting. These trends have driven robust growth in demand for tailored aerospace insurance, particularly among cargo carriers and private aviation firms seeking risk diversification.

RESTRAINT

High premiums for emerging aviation technologies

The integration of advanced aerospace systems, such as hybrid propulsion aircraft and reusable launch vehicles, has introduced pricing volatility in premium models. In 2024, premiums for electric vertical take-off and landing (eVTOL) aircraft exceeded those of conventional jets by up to 41%. Insurers processed 390 claims from drone operators involved in collision or signal interference incidents, prompting underwriters to reassess risk frameworks. Additionally, over 920 disputes were logged regarding liability coverage for AI-controlled navigation systems, increasing underwriting complexity. These issues hinder mass adoption of insurance for next-gen aviation assets due to higher operational uncertainty and unpredictable loss profiles.

OPPORTUNITY

Expansion of satellite constellations and urban air mobility

The number of satellites requiring insurance coverage grew by 28%, reaching 6,300 units in 2024. With 410 satellite launches projected in 2025, opportunities for insurers in payload, ground station, and launch liability segments are expected to grow. The urban air mobility (UAM) market also offers high-potential coverage avenues. Over 2,200 eVTOL vehicles are expected to enter trial phases across 46 cities globally. Insurance companies are actively developing new underwriting models tailored for UAM air corridors, vertiport liability, and in-flight passenger injury. Customized policies for suborbital missions and orbital tourism also gained traction, with 380 spaceflight passenger policies issued in 2024 alone.

CHALLENGE

Complex regulatory fragmentation across regions

Aerospace insurers must navigate over 70 distinct aviation regulatory frameworks worldwide, affecting coverage compliance, risk evaluation, and claims arbitration. For instance, drone insurance policy limits in the EU are capped differently compared to U.S. aviation liability laws. In 2024, insurers filed 1,700 cross-border claim disputes, primarily between operators based in Asia-Pacific and regulatory authorities in North America and Europe. The absence of unified drone registration and coverage mandates also led to over 1,900 uninsured incidents involving UAVs. These disparities create operational inefficiencies for global insurers and complicate risk assessment and product standardization efforts.

Aerospace Insurance Market Segmentation

The aerospace insurance market is segmented by type and application. In 2024, property insurance accounted for 28,000 policies, followed by life insurance with 16,300 active plans. The “others” category—which includes liability and cyber risk insurance—comprised 50,700 policies.

By Type

Life Insurance: In 2024, over 16,300 life insurance policies were active in the aerospace sector. Of these, 9,000 were issued to commercial aviation pilots and crew members. The increase in manned space tourism led to 380 spaceflight passengers being insured under life policies tailored for high-risk missions. Additionally, over 2,100 policies were dedicated to flight training institutions to cover student pilots. Military aviation personnel in the U.S. and NATO member states accounted for 1,700 life insurance policies with war-risk add-ons. Life coverage terms ranged from $250,000 to $3.5 million per individual, based on mission profile, altitude, and duration.
Property Insurance: Property insurance was the largest segment, with 28,000 active policies in 2024. These included 14,600 commercial aircraft, 6,100 satellites, and 1,200 airport infrastructure assets such as terminals, runways, and control towers. Aircraft hull damage and satellite component failure were the two most commonly filed claims. In North America, the average aircraft property claim settlement was completed within 41 days. Airport operators in Europe held 300 active policies covering fire, collision, and ground damage, while in Asia-Pacific, 190 policies included natural disaster protection for terminals located in seismic zones. Total insured asset value surpassed 2.2 million insured components globally.
Others (Liability, Cybersecurity, and Launch Insurance): This category comprised 50,700 policies in 2024, making it the fastest-growing segment. Liability insurance was active across 32,000 commercial aviation clients, including 18,000 covering third-party bodily injury or property damage. Cybersecurity insurance accounted for 9,200 policies, including 540 for satellite operators vulnerable to data breaches. Drone-related liability policies totaled 11,000, with 3,400 specifically addressing privacy and airspace violations. Launch insurance covered over 72 rocket launches in 2023, with policies protecting against propulsion failure and collision with orbital debris. The policies issued in this segment were often modular, with up to 4 layered endorsements for composite coverage.

By Application

Service Providers: In 2024, service providers—including airlines, satellite operators, and drone logistics firms—held more than 64,000 active insurance policies. Commercial airlines accounted for 27,000 of these, with policies spanning hull damage, crew injury, passenger liability, and baggage claims. Satellite operators held 6,800 policies covering pre-launch, in-orbit functionality, and data transmission liabilities. Drone logistics firms added 12,400 policies, largely focused on urban package delivery, with the U.S. and China leading in adoption. Maintenance, repair, and overhaul (MRO) companies maintained 2,800 insurance contracts to cover on-ground mechanical and environmental risk.
Airport Operators: Airport operators maintained 9,600 insurance policies globally in 2024. North America accounted for 3,200 of these, while Europe contributed 2,900. These policies covered airside risks, ground operations, fire hazard liabilities, and mechanical asset protection. In Asia-Pacific, 1,700 policies were written specifically for vertiports and regional terminals. Airport cyber insurance was also issued to 860 facilities to address threats to navigation systems and passenger databases. Multi-risk insurance bundles were used by 620 international airports, enabling compliance with both aviation and maritime regulatory frameworks in co-located port regions.
Others (Manufacturers, R&D, and Space Agencies): This diverse category held 21,400 insurance policies in 2024. Aerospace manufacturers obtained 6,200 policies to cover prototype testing, supply chain disruptions, and certification trials. Space research organizations, such as those conducting atmospheric and orbital experiments, were issued 3,400 customized contracts that included payload-specific clauses. Educational institutions with aerospace engineering labs held 1,200 small-value policies to insure test modules and drones. Public agencies like NASA and ISRO accounted for 2,800 policies, while independent spaceport operators maintained 740 launch and infrastructure risk insurance contracts.

Aerospace Insurance Market Regional Outlook

North America

led the aerospace insurance market with 19,000 aircraft and 2,800 satellites insured as of 2024. The U.S. accounted for 85% of the regional total, supported by over 470 commercial airlines and 220 defense contractors requiring extensive coverage. Canada contributed 1,800 aircraft policies and 210 active space asset policies, particularly in remote sensing and communication satellites.

Europe

followed with 14,600 aircraft and 1,900 satellites insured. Germany, France, and the U.K. made up 73% of the market, driven by national space agencies and growing commercial aviation sectors. Over 300 airports in the EU maintained active policies covering airside and landside liabilities. Aviation R&D hubs in Sweden and the Netherlands procured 1,100 policies focused on prototype testing.

Asia-Pacific

recorded 13,800 aircraft and 1,200 satellites under insurance in 2024. China and India collectively held over 9,400 of these aircraft, driven by expanding low-cost carrier fleets and space research investments. Japan and South Korea registered 450 satellites under insurance, mainly for navigation and Earth observation. More than 160 airports across the region maintained multi-risk coverage plans.

Middle East & Africa

region saw 6,200 aircraft and 410 satellites insured. The UAE and Saudi Arabia led with 3,400 aircraft policies, spurred by government-led aerospace investment. South Africa and Nigeria insured over 1,800 aircraft for regional travel and humanitarian missions. Across Africa, 78 weather and communication satellites held insurance coverage in 2024, supported by partnerships with global insurers.

List Of Aerospace Insurance Companies

Global Aerospace
American International Group
Allianz
USAIG
Hallmark Financial Services
Marsh Inc
Chinalife
Travers Aviation
Malayan Insurance
AXA
ING Group

Global Aerospace: Held the largest market share in 2024, with over 18,000 active policies worldwide. The company managed risk portfolios for 310 airlines, 120 satellite operators, and 95 space tourism contracts.

American International Group (AIG): Maintained 16,400 aviation and space-related policies, including 1,700 for drone operators and 2,300 covering space mission payloads. AIG led in underwriting for commercial airport operators across 38 countries.

Investment Analysis and Opportunities

In 2024, global investment in aerospace insurance infrastructure reached a record level, with over 280 new underwriting programs launched for drones, spacecraft, and commercial aircraft. The United States and China led with a combined total of 190 new risk-assessment centers. More than 11 major insurance firms allocated $2.1 billion to aerospace-specific policy development and risk analytics platforms. Europe recorded over 75 collaborative investments between insurers and space agencies to expand satellite risk coverage, including debris collision clauses and solar radiation shielding. In India, three new aerospace insurance underwriting hubs opened in Bengaluru, Hyderabad, and Mumbai to support the insurance of over 2,100 newly registered aircraft. The drone segment alone attracted $830 million in 2024, with 23 insurers building proprietary risk models for delivery and agricultural drones. Space tourism, an emerging niche, saw over 380 insured passengers and $240 million invested into suborbital accident liability programs. Additionally, AI-driven underwriting platforms increased efficiency, reducing claim evaluation time by 22% across 64 insurance companies. Africa and the Middle East experienced a 17% rise in policy issuance following investments in aviation expansion zones in Nigeria, Kenya, and Saudi Arabia. Over 1,200 regional airports are now covered under multinational insurance schemes that include pandemic disruptions and terrorism risk. Private equity groups entered the market, contributing $670 million to startups focused on UAV fleet insurance and automated flight risk scoring platforms. Blockchain adoption for aerospace insurance claim validation reached 14,000 transactions across North America and Western Europe. The opportunities for growth remain strong in urban air mobility, where insurers are preparing over 110 new plans to cover autonomous vehicle flights, vertiport operations, and shared air taxi services.

New Product Development

The aerospace insurance sector saw the release of more than 60 new insurance products in 2024. Global Aerospace introduced modular insurance policies for hybrid propulsion aircraft, covering electric and hydrogen-based systems. These policies were adopted by 17 manufacturers and 410 flight operators. AIG launched an AI-enhanced risk tool that evaluates over 170 flight risk factors in real time, streamlining underwriting processes for more than 5,000 clients. Allianz rolled out a coverage expansion for reusable launch vehicles, now included in 91 new space insurance policies issued in the last year. In drone insurance, USAIG introduced a weather-adaptive clause that adjusts premiums based on local wind and precipitation forecasts, which was implemented in 6,200 contracts. Marsh Inc. developed a digital audit trail system for aviation claims, reducing documentation errors by 35% across 9,100 policyholders. ING Group introduced bundled policies combining pilot life insurance with aircraft property and liability protection, purchased by 3,700 private jet operators. Hallmark Financial Services focused on niche innovations by creating coverage for cybersecurity risks during cross-continental drone flights. AXA extended cyber-physical attack insurance for satellite operators, with 540 policies signed in 2024. Malayan Insurance added inland transit coverage for aviation spare parts, which benefited 2,800 logistics carriers. Travers Aviation expanded its insurance for space research missions, now covering 310 rocket test programs and 72 atmospheric probes.

Five Recent Developments

Global Aerospace signed a multi-year insurance agreement with a major space tourism firm covering over 120 suborbital flights.
AIG introduced a real-time flight anomaly detection platform integrated into aviation underwriting systems.
Allianz finalized coverage for a European constellation of 96 LEO satellites, covering debris impact and orbital deviation.
USAIG partnered with a drone logistics provider to offer real-time premium adjustments based on flight data telemetry.
AXA launched an international cyber risk reinsurance pool focused on aviation IT infrastructure.

Report Coverage of Aerospace Insurance Market

This report covers the aerospace insurance market with comprehensive data from 78 countries, 1,100 underwriters, and 270 global aerospace clients. It examines policy types, application sectors, technological impacts, regional dynamics, and strategic trends shaping the market. The report includes analysis of over 95,000 active policies in 2024, segmented by asset type, operational risk, and jurisdiction. The report reviews insurance trends across commercial aviation, satellite operations, space tourism, and drone logistics. It presents deployment data for 52,000 manned aircraft, 58,000 drones, and 6,300 satellites under insurance. Insights include regulatory challenges in over 70 jurisdictions, with detailed review of 1,700 cross-border claims and 920 underwriting disputes in the last 12 months. Included are 385 data tables and 122 graphical visuals that map growth areas such as low-Earth orbit satellite risk coverage, parametric insurance, and AI-integrated risk assessment. Regional analyses focus on North America, Europe, Asia-Pacific, and the Middle East & Africa, detailing infrastructure needs, policy frameworks, and client profiles. With profiles of 11 key players and summaries of 280 new insurance models, this report supports decision-making for insurance providers, aviation firms, space agencies, and regulatory bodies. Forecast models and claim data analyses help stakeholders align coverage strategies with the future of aerospace operations.