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Survey Report

Insurance Marketplace Realities 2025 Spring Update – Aviation & space

May 2, 2025

The competition in the aviation and space insurance market is expected to be less intense in the first half of 2025, but buyers should remain proactive in case conditions tighten.
Rate predictions: Aviation & Space
Trend Range
Airline hull and liability Arrows pointing upwards and downwards +5% to +10%
Airline hull war Flat, (neutral decrease increase) -5% to +5%
Airline excess war liability Flat, (neutral decrease increase) -5% to +5%
Aircraft lessors/banks Arrows pointing upwards Flat to +5%
Product manufacturers and service providers Arrows pointing upwards Flat to +10%
Airports Arrows pointing downwards -2.5% to flat
General aviation hull and liability Arrows pointing sideways Flat
General aviation hull war Arrows pointing sideways Flat

Key takeaway

The intense competition for premium income that characterized the insurance market in 2024, particularly in the final quarter, is expected to be somewhat subdued in the first half of 2025 as insurers pause to assess the evolving landscape. Current market conditions suggest little indication that a significant hardening will occur in the first half of the year, and early reinsurance renewals indicate that direct insurers will likely be open to negotiations. However, in such an unpredictable environment with a number of factors that could sway the market still lingering, buyers are encouraged to take a longer-term perspective, remaining proactive ahead of renewals. Engaging with brokers to explore potential mitigation strategies will be crucial, especially if market conditions become more constrained.

  • For the first time in four years, losses will be greater than the premium intake for insurers.
  • Large claims in the first quarter of 2025 have already likely exceeded the premium intake for the entirety of the year.
  • Capacity increased slightly in 2024 helping to keep pricing stabilized
  • New capacity for hull war and excess third-party war liability has been coming into the market for the last several years, albeit with smaller line sizes.
  • The geo-political environment remains challenging with the on-going conflicts in Ukraine and Gaza.
  • Market conditions have begun to stabilize, and signs of marketplace competition are returning to this class.
  • The inconsistent and inflexible ‘for share subjectivities’ is beginning to ease; insurers are more willing to compromise on coverage.
  • The Hull and Liability market capacity remains buoyant, improved lead competition.
  • Geographic aggregation of assets, sanctions and geopolitics all remain in major focus, but coverage limitations are beginning to soften.
  • Underlying factors offer few indications that the market will harden in the first half of 2025
  • The potential for resolution of large industry losses could reduce (re)insurer appetite and alter market conditions.
  • Maintenance, repair and overhaul (MRO) operators are making significant efforts to control attritional loss levels having some positive effect.
  • Rates have remained fairly stable over the past few years, slowly shifting from +10% increases to flat as the market transitions out of a hard market phase.
  • Excess auto liability coverage as part of an airport general liability policy continues to be an area of concern for carriers.
  • The hull and liability market capacity remains buoyant, improved lead competition.
  • The impact of the recent airline losses in early 2025 has not yet impacted the general aviation sector, which continues to see favorable market conditions, especially on larger risks.
  • Insurers are still trying to push for increases due to claims inflation from rising costs for airframe repair and high-valued engines.
  • In the current environment, smaller general aviation risks are more likely to see flat rates, while larger risks may see a small reduction.
  • When obtaining space insurance, insureds should consider three factors: capacity requirements, premium rating and coverage criteria.
  • The amount of insurance capacity available in the market has decreased slightly from 2024 to 2025.
  • The space insurance market narrative is still being driven by significant losses and poor results.

To read more, download the full report below.

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Insurance Marketplace Realities 2025 Spring UpdatePDF12.3 MB

Disclaimer

WTW hopes you found the general information provided here informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).

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