Aerospace insurers tighten discipline after late 2024 airline losses: WTW

Premiums have stayed flat despite rising aircraft values.

The aerospace insurance market is beginning to move away from its recent soft phase as insurers tighten underwriting discipline after several major airline losses in late 2024 and early 2025, according to WTW. 

Capacity remains strong, but insurers are more selective, focusing on risk quality, claims history and exposure management.

Premiums have stayed flat despite rising aircraft values, passenger traffic and maintenance costs, squeezing insurers’ margins. 

Long-term agreements are still available, but more insurers are requiring premium increases in the second year, especially on higher-limit placements.

Overall, abundant capacity is keeping price increases in check, but recent claims and growing exposures are pushing the market towards greater pricing discipline ahead of the 2025/2026 renewals.