‘Dark Clouds’ Hang Over Aviation Insurance Market, Report Says

New review predicts that the airline insurance market will likely remain competitive in the first half of 2025.

Thursday, February 20, 2025 at 01:14 PM ET

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According to Willis Towers Watson’s recently published Airline Insurance Market Review for the first quarter of 2025, momentum from the fourth quarter of 2024 ‘shows little signs of abating.' [Shutterstock]

Key Takeaways:

The airline insurance market is predicted to remain competitive with potential for rate reductions in the first half of 2025, driven by surplus supply.
A significant market shift could occur later in 2025 if the resolution of aircraft leasing claims related to the Russian invasion of Ukraine reduces insurer/reinsurer capacity.
Insurers are increasingly concerned that rising costs of smaller, attritional claims due to inflation are eroding margins, representing a large portion of annual premiums.
While recent major tragedies may not significantly impact the direct market, factors like composite airframe repair costs, expensive engines, and inflation in liability claims are key concerns.

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Global insurance company Willis Towers Watson (WTW) has predicted that the airline insurance market will likely remain competitive in the first half of 2025 and suggested direct insurers may be more receptive to negotiation.

According to WTW’s recently published Airline Insurance Market Review for the first quarter of 2025, momentum from the fourth quarter of 2024 “shows little signs of abating.”

Caleb Revill

Caleb Revill is a journalist, writer and lifelong learner working as a Junior Writer for Firecrown. When he isn't tackling breaking news, Caleb is on the lookout for fascinating feature stories.