‘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 for buyers in the first half of 2025, with direct insurers potentially open to negotiation due to surplus supply.
This stability is tenuous, as a resolution to ongoing aircraft leasing claims stemming from the Russian invasion of Ukraine could rapidly reduce reinsurance capacity and cause a sharp market shift later in 2025.
Insurers are concerned about rising costs from smaller, attritional claims due to inflation, which are eroding margins and making it harder to cover major loss events.
Buyers are advised to proactively engage with their brokers to develop mitigation strategies in anticipation of potential market constraints.

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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.