Swiss Re: promising prospects for the aviation insurance market

The Swiss Re Institute has reported that the outlook for the aviation insurance market looks promising, despite the impact of the Russian-Ukrainian war and the Covid-19 pandemic.

The aviation and space sector is expected to grow by 4-5% per year by 2030.

The number of commercial aircraft (cargo and passenger) is expected to double by 2040 reaching about 50 000 aircraft from 25 000 in 2019. This increase could result in more premiums for insurers.

The downward trend in air accidents is expected to continue, which would reduce loss experience.

Airline investments in environmentally friendly and safer aircraft could create growth opportunities for the market.