General aviation gains stable rates with underwriting surplus: WTW

Around $100m in premiums are typically placed around 1 July.

The general aviation (GA) insurance market remains stable and competitive, supported by excess underwriting capacity and strong loss histories, according to a report by WTW. 

Unlike the airline and aerospace sectors, which have seen tougher negotiations and stricter underwriting, well-managed GA risks continue to secure favourable terms.

WTW notes that around $100m in premiums are typically placed around 1 July, a key renewal date, especially for oil and gas helicopter fleets. 

Whilst premium reductions are still being achieved, the pace has slowed compared to 2024, suggesting a more cautious and stabilising market.

Clients are becoming more involved in renewal discussions, seeking clarity on pricing amidst broader concerns following recent airline sector losses. 

However, GA remains largely unaffected due to its continued access to capacity and lower loss volatility.

Geopolitical risks are also shaping underwriting. Flights in conflict zones—such as Mali, Sudan, and Yemen—require policy adjustments like stricter cancellation terms and regional limitations. 

Despite this, hull war insurance rates have remained relatively steady over the past year.

Supply chain issues and a tighter economic climate are starting to affect aircraft orders and maintenance. 

MRO losses are rising due to staffing shortages and parts availability. Meanwhile, in the large business jet segment, growing aircraft values and increased liability limits are complicating placements.

In response to market uncertainty, insurers and brokers are turning to facilities and long-term agreements (LTAs) to improve efficiency and pricing stability. 

Facilities streamline underwriting for similar risks, whilst LTAs extend policy periods beyond the typical 12 months. 

However, insurers are now holding or increasing premiums for these longer-term policies, signalling a firmer market stance.