New Report Projects Aviation Insurance Premiums Will Reach 20-Year High

Allianz Commercial says gross written insurance premiums are forecast at more than $8 billion in 2024.

Thursday, August 01, 2024 at 03:33 PM ET

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According to aviation insurance provider Allianz Commercial, airlines will contribute approximately 35 percent of the premiums, while general aviation is expected to account for 47 percent in 2024. [Courtesy: United Airlines]

Key Takeaways:

Aviation insurance premiums are projected to reach a 20-year high of over $8 billion in 2024, driven by record air traffic growth, primarily in Asia-Pacific and North America.
This surge is largely due to increasing aircraft repair costs, stemming from higher labor rates, increased parts prices, and inflation.
Most insurance claim value (85%) originates from collisions, crashes, and defective product issues.
The transition to next-generation aircraft and a growing shortage of skilled mechanics are also impacting and could further influence future claims and repair costs.

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A new report from insurance provider Allianz Commercial says gross written insurance premiums for the aviation sector are projected to reach a 20-year high of more than $8 billion in 2024.

According to the insurance provider, airlines will contribute approximately 35 percent of the premiums, while general aviation is expected to account for 47 percent. Allianz says the surge in premiums comes as 2024 air traffic is anticipated to reach a record high—growing by 10.4 percent year over year, predominantly driven by the Asia-Pacific and North American regions.

Amelia Walsh

Amelia Walsh is a private pilot who enjoys flying her family’s Columbia 350. She is based in Colorado and loves all things outdoors including skiing, hiking, and camping.