Aviation Insurance Market Size, Share, Growth, and Industry Analysis, By Type (Public Liability Insurance,Passenger Liability Insurance,Combined Single Limit,Ground risk hull insurance not-in-motion,Ground risk hull insurance in-motion,In-flight Insurance), By Application (Personal Aviation,Commercial Aviation), Regional Insights and Forecast to 2035

Aviation Insurance Market Overview

The global Aviation Insurance Market is forecast to expand from USD 4384.55 million in 2026 to USD 4808.54 million in 2027, and is expected to reach USD 10062.73 million by 2035, growing at a CAGR of 9.67% over the forecast period.

The aviation insurance market covers a wide spectrum of coverage types, including public liability, passenger liability, hull insurance, and in-flight coverage, protecting more than 362,000 registered aircraft worldwide. In 2024, over 48% of global aviation insurance activity was concentrated in commercial operations, while 37% was driven by general aviation. Aircraft accidents accounted for approximately 62% of claims value, while ground handling incidents represented 18%. The Aviation Insurance Market Size has expanded to meet growing demand from both developed and emerging regions. Aviation Insurance Market Analysis highlights that passenger liability remains a dominant segment, comprising nearly 34% of policy allocations globally.

In the United States, the aviation insurance market covers nearly 200,000 registered aircraft, representing roughly 55% of the world’s general aviation fleet. Direct written premiums in U.S. aviation insurance increased by 7% year-over-year in 2023, with general aviation policies representing around 68% of the domestic market. Commercial airline operations accounted for 21% of insured exposure, while corporate jets and charter services made up 11%. Aviation Insurance Market Insights for the U.S. indicate a claims frequency reduction of 3% compared to the previous year, attributed to improved maintenance protocols and pilot training. Passenger liability remains the largest coverage type at 39%.

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Key Findings

• Key Market Driver: 97% recovery of pre-pandemic global passenger traffic has increased aviation insurance demand.
• Major Market Restraint: 66% of total annual premiums are absorbed by attritional claims.
• Emerging Trends: 100% of leading insurers are adopting AI-based risk assessment systems.
• Regional Leadership: North America holds over 40% of the global aviation insurance market share.
• Competitive Landscape: Two leading insurers control approximately 32% of U.S. aviation insurance coverage.
• Market Segmentation: Passenger liability insurance accounts for 34% of global aviation insurance policies.
• Recent Development: New underwriting platforms expanded regional coverage capacity by 12% in 2024.

Aviation Insurance Market Latest Trends

Aviation Insurance Market Trends in 2025 show a significant focus on pricing stability, technological adoption, and risk-based underwriting. Rate adjustments for airline hull and liability coverage averaged between +5% and +10% in early 2025, while airport liability policies experienced changes between −2.5% and 0%. In-flight insurance premiums for general aviation remained stable, reflecting abundant market capacity. Aviation Insurance Market Analysis indicates that over 70% of insurers are integrating digital claims processing, reducing settlement times by 15%.

The Aviation Insurance Industry Report reveals that global underwriters are investing heavily in predictive analytics to improve risk modeling, with 82% of firms using real-time aircraft telemetry for policy adjustments. Aviation Insurance Market Growth is supported by increased coverage for new aircraft deliveries, which rose 11% year-over-year in 2024. The Aviation Insurance Market Outlook anticipates further policy diversification as 64% of operators adopt more comprehensive combined single limit coverage. Aviation Insurance Market Insights emphasize that geopolitical instability has kept war risk premiums elevated, with an average increase of 5% across the board. These Aviation Insurance Market Trends indicate a competitive yet risk-aware environment for global and regional insurers.

Aviation Insurance Market Dynamics

Aviation Insurance Market Dynamics refer to the interplay of factors influencing market growth, constraints, opportunities, and challenges. In 2025, global market size is USD 3,997.95 million with a 9.67% CAGR, driven by 34% passenger liability share, 28.65% public liability share, and regional dominance of North America at 40.03% market share.

DRIVER

"Rising global air traffic and fleet expansion."

With over 4.7 billion air passengers recorded in 2024, global aviation activity has surged close to pre-pandemic highs, driving demand for comprehensive insurance coverage. Aviation Insurance Market Size expansion is fueled by a 14% increase in commercial aircraft deliveries and a 9% rise in general aviation operations. Fleet modernization programs have resulted in 27% of active aircraft being under five years old, leading to a higher concentration of high-value assets requiring extensive hull and liability coverage. Aviation Insurance Market Opportunities arise from increased route connectivity, with international passenger traffic volumes growing by 12% in the last year.

RESTRAINT

" High claim severity from catastrophic events."

Although overall incident rates have declined, the severity of claims has increased. Aviation Insurance Market Analysis shows that average claim payouts for hull losses rose by 18% in 2024 due to higher aircraft replacement costs and parts shortages. Passenger injury claims now represent 42% of total liability payouts. Severe weather events contributed to 16% of total claims value. These cost pressures limit the ability of insurers to reduce premiums despite healthy competition, constraining Aviation Insurance Market Growth in certain segments and increasing reinsurance dependence by 23% over the past two years.

OPPORTUNITY

"Growth in emerging aviation markets."

Aviation Insurance Market Forecast data indicates that Asia-Pacific, Africa, and Latin America collectively account for 36% of new aircraft registrations annually. Low penetration of aviation insurance in these regions means substantial room for expansion, especially as regulatory compliance adoption rates increase by 21% year-over-year. Aviation Insurance Industry Analysis shows that general aviation registrations in Asia-Pacific grew 13% in 2024, while business jet activity in Africa increased 9%. These trends create opportunities for underwriters to expand their portfolios and for brokers to secure long-term client contracts in developing aviation hubs.

CHALLENGE

" Rising operational and reinsurance costs."

Reinsurance treaty costs for aviation portfolios rose 11% in 2024, adding pressure to insurers’ expense ratios. Aviation Insurance Market Insights show that fuel price volatility, inflation in aircraft parts (up 8%), and pilot shortages have indirectly raised insured loss probabilities. Administrative costs per policy increased by 6%, limiting profitability margins. War risk cover remains costly, with premiums averaging 4–5% higher than other aviation policy lines. These factors present barriers for both market entry and competitive pricing strategies in the Aviation Insurance Market.

Aviation Insurance Market Segmentation

Aviation Insurance Market Segmentation is defined by type—public liability, passenger liability, combined single limit, ground risk hull not-in-motion, ground risk hull in-motion, and in-flight insurance—and by application, including personal aviation and commercial aviation. Public liability represents 28% of total policies, passenger liability 34%, combined single limit 18%, ground risk hull policies 12%, and in-flight insurance 8%. By application, commercial aviation accounts for 57% of total market share, while personal aviation represents 43%. Aviation Insurance Market Analysis confirms that combined single limit coverage is increasing among large operators due to flexible claim allocation.

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BY TYPE

Public Liability Insurance: Covers damage to third-party property and injury to non-passengers caused by an aircraft. Aviation Insurance Market Insights reveal that 28% of global aviation policies are public liability. Claims severity in this segment increased 7% in 2024 due to property damage from runway excursions and hangar incidents. Average policy limits in developed markets exceed $500 million per incident.

The Public Liability Insurance segment in the Aviation Insurance Market is projected at USD 1,145.42 million in 2025, holding 28.65% share, and expected to grow at a CAGR of 9.21% through 2034.

Top 5 Major Dominant Countries in the Public Liability Insurance Segment

• United States – Market size USD 428.24 million in 2025, 37.39% share of segment, growing at a CAGR of 8.96% driven by extensive commercial and general aviation fleet coverage.
• Canada – Market size USD 102.91 million, 8.99% share, CAGR 9.18%, supported by high adoption in regional passenger carriers and private aviation operators.
• United Kingdom – Market size USD 96.35 million, 8.41% share, CAGR 8.76%, benefiting from a strong presence of underwriters and global policy hubs.
• Germany – Market size USD 88.16 million, 7.70% share, CAGR 9.34%, supported by expanding commercial air traffic and industrial aviation applications.
• France – Market size USD 72.48 million, 6.33% share, CAGR 9.02%, driven by national carriers and growing regional flight operations.

Passenger Liability Insurance: Provides coverage for injury or death of passengers. Accounting for 34% of all aviation insurance, it is the largest type segment. Aviation Insurance Market Analysis shows average claim payouts in 2024 rose 9%, with 42% of claims linked to turbulence-related injuries. Passenger Liability Insurance covers injury, death, or medical expenses for passengers traveling on the insured aircraft. It applies from the moment passengers board until they disembark. This type of coverage ensures that operators can meet legal compensation obligations in the event of accidents, turbulence injuries, emergency landings, or other incidents affecting passengers.

The Passenger Liability Insurance segment is valued at USD 1,359.31 million in 2025, representing 34.01% market share, and will expand at a CAGR of 9.88% through 2034.

Top 5 Major Dominant Countries in the Passenger Liability Insurance Segment

• United States – USD 512.46 million market size, 37.69% share, CAGR 9.45%, reflecting the largest passenger volume and high-value coverage limits.
• China – USD 144.73 million, 10.65% share, CAGR 10.32%, supported by rising air travel and fleet expansion.
• United Kingdom – USD 117.53 million, 8.65% share, CAGR 9.26%, benefiting from European hub operations.
• Germany – USD 105.92 million, 7.79% share, CAGR 9.72%, driven by major carriers and high passenger liability standards.
• India – USD 98.44 million, 7.24% share, CAGR 10.08%, supported by double-digit passenger traffic growth.

Combined Single Limit: Combines liability for passengers, third parties, and property into a single coverage limit. Represents 18% of market share. Aviation Insurance Market Growth in this segment is driven by large operators, with 64% of airlines using CSL policies in 2024 for streamlined risk management.

The CSL segment is estimated at USD 719.63 million in 2025, 18.01% share, growing at a CAGR of 9.54% to 2034.

Top 5 Major Dominant Countries in the CSL Segment

• United States – USD 256.31 million, 35.61% share, CAGR 9.11%, preferred by large fleet operators for streamlined coverage.
• United Kingdom – USD 71.44 million, 9.93% share, CAGR 8.94%, driven by airline consolidation.
• China – USD 68.87 million, 9.57% share, CAGR 10.24%, benefiting from rising commercial fleet demand.
• Canada – USD 52.01 million, 7.23% share, CAGR 9.42%, supported by charter and cargo operations.
• Australia – USD 46.27 million, 6.43% share, CAGR 9.35%, driven by tourism-based aviation.

Ground Risk Hull Insurance Not-in-Motion: Covers aircraft against damage while stationary on the ground. Makes up 7% of policies. 2024 data shows 22% of claims originated from hangar fires and maintenance accidents. Combined Single Limit Insurance merges public liability and passenger liability into one comprehensive coverage limit. Instead of separate caps for third-party and passenger claims, a single monetary limit covers all liabilities arising from a single incident.

Segment valued at USD 319.84 million in 2025, 8.00% share, growing at a CAGR of 9.35%.

Top 5 Major Dominant Countries

• United States – USD 114.74 million, 35.88% share, CAGR 9.06%, due to high static fleet volume.
• Canada – USD 33.56 million, 10.49% share, CAGR 9.27%, supported by seasonal storage policies.
• United Kingdom – USD 29.16 million, 9.12% share, CAGR 8.87%, benefiting from maintenance hub activities.
• Germany – USD 26.48 million, 8.28% share, CAGR 9.14%, linked to large commercial maintenance operations.
• Australia – USD 22.69 million, 7.09% share, CAGR 9.41%, driven by regional carriers.

Ground Risk Hull Insurance In-Motion: Protects aircraft during taxiing. Represents 5% of the market. 14% of incidents in this category in 2024 were linked to ground collisions with service vehicles. Ground Risk Hull Insurance (In-Motion) covers damage to an aircraft while it is moving on the ground under its own power, typically during taxiing before takeoff or after landing. It does not cover incidents that occur during the actual takeoff or landing roll, which fall under in-flight coverage

Valued at USD 199.89 million in 2025, holding 5.00% share, growing at a CAGR of 9.17%.

Top 5 Major Dominant Countries

• United States – USD 72.16 million, 36.11% share, CAGR 8.94%, covering high taxiing movement frequency.
• United Kingdom – USD 19.28 million, 9.64% share, CAGR 8.86%, due to dense airport operations.
• Germany – USD 18.21 million, 9.10% share, CAGR 9.02%, supported by industrial airport hubs.
• Canada – USD 16.38 million, 8.19% share, CAGR 9.08%, driven by cargo and charter segments.
• China – USD 14.72 million, 7.36% share, CAGR 9.94%, linked to expanding domestic routes.

In-Flight Insurance: Covers damage from takeoff to landing. Accounts for 8% of policies. In 2024, in-flight claims comprised 18% of total claims value, often linked to bird strikes and turbulence. In-Flight Insurance provides coverage for physical damage to the aircraft from the moment it starts its takeoff roll until it completes its landing roll. This includes damage from turbulence, bird strikes, severe weather, in-air collisions, or accidents during landing.

In-Flight Insurance segment is valued at USD 253.86 million in 2025, accounting for 6.36% share, with a CAGR of 9.68%.

Top 5 Major Dominant Countries

• United States – USD 91.12 million, 35.90% share, CAGR 9.34%, reflecting high flight hour volumes.
• China – USD 26.73 million, 10.53% share, CAGR 10.14%, driven by long-haul expansions.
• United Kingdom – USD 23.24 million, 9.16% share, CAGR 8.96%, benefiting from transatlantic services.
• Germany – USD 20.76 million, 8.18% share, CAGR 9.08%, supported by European hub operations.
• France – USD 18.24 million, 7.18% share, CAGR 9.02%, driven by national carrier fleet coverage.

BY APPLICATION

Personal Aviation: Represents 43% of market share. Includes privately owned planes and recreational flying. In 2024, 26% of personal aviation claims were from hard landings. Personal Aviation refers to the operation of privately owned aircraft for non-commercial purposes. This includes single-engine planes, multi-engine light aircraft, private jets, gliders, and other recreational aircraft flown for leisure, sport, or personal travel.

Personal Aviation segment is valued at USD 1,719.06 million in 2025, accounting for 43.02% share, with a CAGR of 9.28%.

Top 5 Major Dominant Countries

• United States – USD 642.64 million, 37.37% share, CAGR 8.96%, driven by the largest global general aviation fleet.
• Canada – USD 154.25 million, 8.97% share, CAGR 9.12%, supported by private flying culture.
• Australia – USD 147.39 million, 8.57% share, CAGR 9.08%, driven by rural connectivity.
• United Kingdom – USD 133.58 million, 7.77% share, CAGR 8.87%, benefiting from private aircraft ownership.
• Germany – USD 126.71 million, 7.37% share, CAGR 9.14%, with expanding sport aviation clubs.

Commercial Aviation: Holds 57% market share. Includes scheduled airlines, charters, and cargo. 2024 saw a 12% increase in insured fleet value as airlines modernized aircraft. Commercial Aviation encompasses all aircraft operations conducted for hire or compensation, including scheduled airlines, charter flights, cargo operations, and air taxi services. This sector involves larger fleets, higher flight hours, and greater passenger or cargo volumes, leading to higher insured values and broader liability exposure.

Commercial Aviation segment is valued at USD 2,278.89 million in 2025, representing 56.98% share, with a CAGR of 9.97%.

Top 5 Major Dominant Countries

• United States – USD 865.31 million, 37.96% share, CAGR 9.54%, reflecting extensive airline operations.
• China – USD 252.66 million, 11.09% share, CAGR 10.38%, driven by strong passenger growth.
• United Kingdom – USD 211.36 million, 9.27% share, CAGR 9.24%, supported by major carriers.
• Germany – USD 194.21 million, 8.52% share, CAGR 9.41%, benefiting from cargo and passenger demand.
• India – USD 171.44 million, 7.52% share, CAGR 10.04%, driven by expanding domestic routes.

Regional Outlook for the Aviation Insurance Market

The Aviation Insurance Market Report highlights distinct regional performance patterns. North America leads with over 40% of global market share, followed by Europe at approximately 30%. Asia-Pacific holds about 23%, while the Middle East & Africa together account for just under 7%. Aviation Insurance Market Analysis indicates that regional growth is shaped by fleet size, regulatory frameworks, and claim frequency trends. Commercial aviation dominates in North America and Europe, while general aviation policies are more prevalent in Asia-Pacific and parts of Africa. Aviation Insurance Market Insights reveal that infrastructure investments in emerging markets are steadily increasing insurance penetration.

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NORTH AMERICA

North America accounts for more than 40% of the global Aviation Insurance Market Size, supported by a fleet exceeding 200,000 registered aircraft. The United States holds approximately 55% of the world’s general aviation aircraft, while Canada contributes an additional 6% to the regional total. Aviation Insurance Market Growth is driven by high commercial air traffic, with U.S. airports processing over 900 million passengers annually in 2024. Passenger liability policies represent 38% of North American aviation insurance, followed closely by public liability at 30%.

North America’s Aviation Insurance Market size is USD 1,599.18 million in 2025, representing 40.03% share, growing at a CAGR of 9.35%.

North America – Major Dominant Countries in the Aviation Insurance Market

• United States – USD 1,293.26 million, 80.85% share, CAGR 9.21%, with the world’s largest insured fleet.
• Canada – USD 192.84 million, 12.06% share, CAGR 9.42%, driven by strong general aviation.
• Mexico – USD 56.27 million, 3.52% share, CAGR 9.47%, supported by regional carriers.
• Bahamas – USD 31.29 million, 1.96% share, CAGR 9.08%, benefiting from charter services.
• Bermuda – USD 25.52 million, 1.60% share, CAGR 9.12%, with niche leasing coverage.

EUROPE

Europe holds approximately 30% of global Aviation Insurance Market Share, with a diverse mix of national carriers, regional airlines, and a growing general aviation sector. The continent hosts more than 85,000 registered aircraft, with the United Kingdom, France, and Germany accounting for 58% of the total. Aviation Insurance Market Size in Europe benefits from the presence of major underwriters and syndicates concentrated in London’s insurance hub.

Europe’s Aviation Insurance Market is USD 1,197.84 million in 2025, holding 29.97% share, growing at a CAGR of 9.28%.

Europe – Major Dominant Countries in the Aviation Insurance Market

• United Kingdom – USD 298.65 million, 24.92% share, CAGR 9.04%, driven by hub airports.
• Germany – USD 276.91 million, 23.11% share, CAGR 9.37%, supported by cargo and passenger volumes.
• France – USD 212.73 million, 17.76% share, CAGR 9.14%, with strong carrier networks.
• Italy – USD 168.37 million, 14.05% share, CAGR 9.18%, benefiting from tourism-driven aviation.
• Spain – USD 141.18 million, 11.78% share, CAGR 9.02%, supported by seasonal air travel.

ASIA-PACIFIC

Asia-Pacific accounts for roughly 23% of global Aviation Insurance Market Size, with significant contributions from China, Japan, Australia, and India. The region recorded over 1.5 billion passenger journeys in 2024, up 12% from the previous year. Aviation Insurance Market Analysis highlights that commercial aviation dominates at 63% of the regional market, while personal aviation accounts for 37%.

Asia’s Aviation Insurance Market is USD 919.53 million in 2025, 23.00% share, growing at a CAGR of 10.01%.

Asia – Major Dominant Countries in the Aviation Insurance Market

• China – USD 348.29 million, 37.88% share, CAGR 10.32%, with large fleet expansion.
• Japan – USD 172.16 million, 18.73% share, CAGR 9.82%, supported by strong domestic carriers.
• India – USD 158.88 million, 17.28% share, CAGR 10.04%, benefiting from rapid passenger growth.
• South Korea – USD 134.45 million, 14.62% share, CAGR 9.94%, driven by international hub airports.
• Australia – USD 105.75 million, 11.50% share, CAGR 9.68%, supported by domestic and regional connectivity.

MIDDLE EAST & AFRICA

The Middle East & Africa together represent just under 7% of the global Aviation Insurance Market Size, yet the region’s growth rate outpaces the global average. The Middle East is home to more than 1,800 wide-body commercial aircraft, with fleets expanding by 5% in 2024. Aviation Insurance Market Share is concentrated in passenger liability at 40% and public liability at 28%.

Middle East & Africa market is USD 281.40 million in 2025, 7.04% share, with CAGR 9.44%.

Middle East and Africa – Major Dominant Countries in the Aviation Insurance Market

• United Arab Emirates – USD 84.39 million, 29.99% share, CAGR 9.31%, driven by premium carrier fleets.
• Saudi Arabia – USD 63.74 million, 22.66% share, CAGR 9.41%, with expanding national airline operations.
• South Africa – USD 48.29 million, 17.16% share, CAGR 9.54%, benefiting from cargo and charter growth.
• Qatar – USD 44.76 million, 15.91% share, CAGR 9.38%, supported by global hub airports.
• Egypt – USD 40.22 million, 14.30% share, CAGR 9.52%, driven by tourism and domestic carriers.

List of Top Aviation Insurance Companies

• Munich-American Holding Corp
• ALIGNED Insurance
• Global Aerospace Underwriting Managers (Canada) Limited
• Old Republic International Corp
• Allianz Group
• American International Group
• ACE Ltd.
• Starr International Co.
• Berkshire Hathaway Inc.
• Chubb Corp
• XL Group plc
• HCC Insurance Holdings Inc.

American International Group (AIG): Holds approximately 20% of the U.S. aviation insurance market, insuring over 40,000 aircraft.

Allianz Group: Commands around 12% global market share, covering fleets in over 70 countries.

Investment Analysis and OpportunitieS

Aviation Insurance Market Growth is supported by sustained investment in underwriting technology, data analytics, and market expansion into emerging regions. Between 2023 and 2024, insurers increased investment in digital platforms by 17%, enhancing claims processing efficiency and customer engagement. The Aviation Insurance Industry Analysis highlights that 29% of investment capital was directed toward expanding reinsurance capacity to manage large-scale loss events.

Opportunities are most pronounced in Asia-Pacific and Africa, where insurance penetration rates remain below 70% for active fleets. Aviation Insurance Market Insights reveal a growing appetite for parametric insurance products, particularly in weather-sensitive regions. Investment in specialized war risk and cyber risk policies is also on the rise, with uptake increasing by 8% year-over-year.

New Product Development

Aviation Insurance Market Trends in 2024–2025 show an acceleration in new product launches tailored to evolving aviation risks. Insurers have introduced AI-driven underwriting systems capable of real-time risk scoring, reducing manual assessment time by 40%. Aviation Insurance Industry Report findings indicate the introduction of modular policies, allowing operators to customize coverage for specific risks such as cyber threats, drone operations, or environmental liabilities.

Five Recent Developments

• Launch of AI-powered aviation underwriting platforms, increasing operational efficiency by 40%.
• Introduction of modular combined single limit policies, boosting uptake among mixed fleet operators by 15%.
• Expansion of war risk coverage with enhanced geopolitical risk clauses, with adoption up 12%.
• Development of parametric weather insurance products, seeing a 9% uptake in high-risk weather zones.
• Entry of specialized eVTOL insurance products, covering 7% of new insured aircraft in 2024.

Report Coverage of Aviation Insurance Market

The Aviation Insurance Market Report provides comprehensive coverage of global and regional insurance activities across commercial and general aviation sectors. It examines policy segmentation by type—public liability, passenger liability, combined single limit, ground risk hull insurance (both in-motion and not-in-motion), and in-flight insurance—and by application, including personal and commercial aviation. The Aviation Insurance Market Size is analyzed in terms of fleet coverage, claim trends, insured asset values, and regional market share distribution.

The report delivers Aviation Insurance Market Insights into competitive positioning, highlighting the role of leading underwriters and emerging market entrants. It includes Aviation Insurance Market Trends on digital transformation, regulatory impacts, and product innovation. Market dynamics such as drivers, restraints, opportunities, and challenges are analyzed with quantitative indicators, including percentages and operational metrics. Aviation Insurance Market Growth forecasts are presented for each major region, alongside analysis of investment patterns and product development pipelines.

Aviation Insurance Market Report Coverage

REPORT COVERAGE	DETAILS
Market Size Value In	USD 4384.55 Million in 2026
Market Size Value By	USD 10062.73 Million by 2035
Growth Rate	CAGR of 9.67% from 2026 - 2035
Forecast Period	2026 - 2035
Base Year	2025
Historical Data Available	Yes
Regional Scope	Global
Segments Covered	By Type : Public Liability Insurance Passenger Liability Insurance Combined Single Limit Ground risk hull insurance not-in-motion Ground risk hull insurance in-motion In-flight Insurance By Application : Personal Aviation Commercial Aviation
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