Aircraft hull insurance in Latin America is expected to grow faster
Insights into new business opportunities in the insurance industry will also be part of the 38th FIDES Western Hemisphere Insurance Conference, to be held in Rio de Janeiro between September 24 and 26, 2023. For example, insurance companies that cover aircraft hulls in Latin America and the Caribbean have bright prospects, according to a study by Boeing.
The American aircraft manufacturer projected demand over the next 20 years and it believes that fleet renewal will accelerate in the region, leading to around 2,240 aircraft deliveries. Worldwide, an estimated 41,170 airplanes will be delivered to airlines.
If these projections prove accurate, the global fleet will expand from almost 26,000 units in service in 2019 to 47,080 in 2041, greatly increasing demand for aircraft hull insurance. Fleet renewal, despite airlines’ high indebtedness due to the pandemic, is one way to boost the sector’s efficiency, Boeing argues.
Brazil in the lead
It is estimated that Brazil will lead demand in Latin America, accounting for 30% of the 2,240 projected new aircraft orders. Boeing forecasts that passenger traffic will expand 4.4% per year on average through 2041.
The Airbus Global Market Forecast (GMF) also indicates a very favorable picture. Airbus believes that Latin America’s active fleet will double in size in the next two decades, from 1,450 aircraft now to 2,850. This expansion will accompany a projected doubling in Latin American passenger traffic in the next 20 years, after it tripled between 2002 and 2019.
FIDES Rio 2023
FIDES Rio 2023 is an international event that will bring together representatives of 18 Latin American countries as well as the United States and Spain. Involving talks, debates and a lot of sharing of information and experiences, the meeting will focus on ways forward for the global insurance industry.