Property and Casualty Insurance for Aerospace and Defense Market Forecasts Substantial Growth
A recent study by HTF Market Intelligence forecasts considerable expansion in the global property and casualty (P&C) insurance market for the aerospace and defense sectors. The comprehensive analysis, spanning over 143 pages, examines the market’s scope, including product categories and industry trends, alongside a market prognosis for the period from 2025 to 2032. The research highlights the market’s segmentation across key regions, indicating a widespread market reach and growth potential.
Major industry players analyzed in the report include Allianz, AIG, Berkshire Hathaway, Chubb, Swiss Re, AXA XL, Tokio Marine, Munich Re, Liberty Mutual, Sompo International, Hiscox, Starr Companies, Lockton, QBE Insurance, Beazley, W. R. Berkley, Markel Corporation, HDI Global, CNA Financial, and American Financial Group.
HTF Market Intelligence projects a compound annual growth rate (CAGR) of 9.5% for the global P&C insurance market within the aerospace and defense industries, increasing from $18.2 billion in 2025 to an estimated $37.5 billion by 2032. The report covers several key areas of the market, including:
By Type:
- Aircraft Hull Insurance
- Liability Coverage
- Workers’ Compensation
- Defense Contractor Insurance
- Business Interruption
By Application:
- Commercial Aviation
- Military Aircraft
- Satellites
- Space Exploration
- UAVs
Market Definition and Scope
This sector addresses the financial risks associated with aircraft, spacecraft, and military defense equipment. The insurance protects against damages, accidents, liability claims, and operational disruptions. Aerospace and defense companies depend on specialized insurers to mitigate financial losses related to natural disasters, terrorism, mechanical failures, and cyber threats. The market is adapting by incorporating data analytics and artificial intelligence to refine risk assessment and claims management processes.
Regional and Market Trends
The report identifies North America as the leading region, with the Asia-Pacific area experiencing the fastest growth. Current market trends include the adoption of usage-based insurance, the rise of cyber risk policies, and the application of AI-driven underwriting. The primary market drivers include rising global defense budgets, increased operational risks in the aerospace industry, and the expansion of private space ventures.
However, the market faces challenges such as high claim costs, complex regulatory environments, and limited competition among insurers.
Market Segment Analysis
The study provides an in-depth analysis of market segments by type, examining Aircraft Hull Insurance, Liability Coverage, Workers’ Compensation, Defense Contractor Insurance, and Business Interruption. It also offers a detailed look at market segments categorized by application, including Commercial Aviation, Military Aircraft, Satellites, Space Exploration, and UAVs.
Regional Analysis
The report provides a regional analysis of the global P&C insurance market for aerospace and defense, covering:
- North America: United States, Canada, and Mexico.
- South & Central America: Argentina, Chile, Colombia, and Brazil.
- Middle East & Africa: Saudi Arabia, United Arab Emirates, Turkey, Israel, Egypt, and South Africa.
- Europe: UK, France, Italy, Germany, Spain, Nordics, BALTIC Countries, Russia, Austria, and the rest of Europe.
- Asia: India, China, Japan, South Korea, Taiwan, Southeast Asia (Singapore, Thailand, Malaysia, Indonesia, Philippines & Vietnam, etc.) & Rest
- Oceania: Australia and New Zealand.
Research Objectives
Key objectives of the P&C insurance market research include:
- Focusing on key manufacturers to define, analyze, and project market value, sales volume, market share, competition, SWOT analysis, and future development plans.
- Sharing detailed information concerning factors that influence market growth, including opportunities, drivers, growth potential, industry-specific challenges, and risks.
- Analyzing individual future prospects, growth trends, and their contribution to the overall market.
- Analyzing developments such as agreements, expansions, product launches, and acquisitions.
- Profiling key players and evaluating their growth strategies.
Porter’s Five Forces and PESTLE Analysis
The study incorporates a Five Forces analysis—examining the threat of new entrants, the threat of substitutes, the threat of competition, and the bargaining power of suppliers and buyers—to provide a thorough market understanding.
PERSPECTIVE:
- Political: Political policy, stability, trade, fiscal, and taxation policies.
- Economical: Interest rates, employment, raw material costs, and foreign exchange rates.
- Social: Family demographics, education, cultural trends, attitude changes, and lifestyles.
- Technological: Digital technology, mobile technology, automation, and R&D.
- Legal: Employment legislation, consumer law, health and safety standards, and international trade regulations.
- Environmental: Climate, recycling, carbon footprint, waste disposal, and sustainability.
Key Market Players
The press release highlights several major players in the P&C insurance market for aerospace and defense. These companies include: Allianz, AIG, Berkshire Hathaway, Chubb, Swiss Re, AXA XL, Tokio Marine, Munich Re, Liberty Mutual, Sompo International, Hiscox, Starr Companies, Lockton, QBE Insurance, Beazley, W. R. Berkley, Markel Corporation, HDI Global, CNA Financial, and American Financial Group.
