Aircraft insurance is a crucial but often overlooked part of the aviation industry. This specialized insurance protects aircraft owners and operators from financial risks associated with flying. With the aviation insurance market reaching $1.87 billion in 2024, it’s clear that this sector plays a significant role in the broader insurance landscape.
The market is characterized by high-value assets and complex risks, making strong underwriting capabilities essential. In 2024, losses and operating expenses exceeded $1.18 billion, highlighting the tight margins that insurers face. Despite the challenges, several companies stand out in the U.S. aircraft insurance market based on their market share.
Leading the pack is American International Group (AIG), which holds a 20% market share with direct premiums written totaling $380 million. Founded in 1919, AIG has established itself as a global leader in property-casualty insurance, operating in around 190 countries. Their comprehensive offerings include coverage for airlines, general aviation, and even drones, with limits reaching up to $2.5 billion.
Chubb Ltd. follows closely behind with a 12% market share and $224 million in direct premiums. Known for its strong financial ratings and extensive Lloyd’s presence, Chubb provides tailored coverage for a variety of aviation needs, including war-risk endorsements.
The Sompo Group and Old Republic Group each hold an 11% market share, with direct premiums of $211 million and $208 million, respectively. Sompo is recognized for its blend of Japanese discipline and North American flexibility, while Old Republic emphasizes decentralized service, making it a preferred choice for general aviation brokers.
Munich Re, Berkshire Hathaway, and Tokio Marine are also key players, with market shares of 10%, 8%, and 7%, respectively. Munich Re is the world’s largest reinsurer and has a dedicated aviation division, while Berkshire Hathaway is known for its financial stability, especially during market downturns.
American Financial Group and AU Holding Co. round out the top ten, with market shares of 5% and 3%. American Financial Group focuses on general aviation and charter operations, while AU Holding specializes in customized solutions for non-standard risks.
As the aviation insurance market continues to grow, brokers and clients are encouraged to consider these leading companies for their insurance needs. Factors such as underwriting precision, claims efficiency, and financial strength are crucial when evaluating potential insurers. With the right coverage, aircraft owners can operate with greater peace of mind, knowing they are protected against unforeseen events.