‘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 in H1 2025 with likely rate reductions due to excess capacity, encouraging direct insurers to negotiate.
A major potential shift in market conditions is the uncertain resolution of aircraft leasing claims related to Russia's invasion, which could rapidly reduce insurer capacity and tighten the market.
Insurers are concerned about rising costs from inflation-driven "attritional claims" eating into margins, prompting advice for buyers to proactively engage brokers for mitigation strategies.

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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.