‘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 early 2025 with potential for continued rate reductions, carrying momentum from late 2024.
A significant risk exists from the potential resolution of Russian aircraft leasing claims, which could rapidly reduce insurer and reinsurer appetite and capacity, leading to a sharp shift in market conditions later in 2025.
Insurers are concerned about rising costs from smaller, attritional claims due to inflation, which are eroding profit margins, despite major loss events not significantly impacting the direct market.
Given the market's susceptibility to change, buyers are advised to proactively engage with their brokers to plan 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.