Aviation Insurance

In the airline segment, capacity remains available for well-managed risks. Still, pricing and terms are increasingly differentiated by exposure, with US airline risks facing a materially more challenging environment due to higher attritional loss activity, social inflation, and greater liability severity. Geopolitically exposed accounts also continue to encounter tighter terms and higher premiums, and rate pressure is expected to persist through 2026. In general aviation (GA), abundant capacity continues to support generally soft conditions despite persistent attritional losses. However, underwriting sentiment is more nuanced for US exposures, where elevated repair costs, social inflation, and recent loss activity are prompting greater caution.

Higher-performing accounts continue to benefit most from increased competition, but the durability of current pricing may depend on how loss trends develop over the remainder of the year. Across aerospace, underlying conditions are resulting in rate increases, driven by airline loss spillover, manufacturing account deterioration, and broader cost pressures. However, plentiful capacity and competitive behavior have so far suppressed pricing increases. Long-term agreements are gaining greater traction as clients seek certainty and protect against potential future shifts.