Through 2026, the aviation insurance market is expected to respond to continued pricing pressure, changing risk dynamics, and accelerating technological disruption. WTW believes success will favor those operators who move quickly, leverage data to drive decisions and stay ahead of emerging risks.
In a new aviation insurance landscape report released following the recent renewal season, WTW noted that 2025 is a year of realignment for the aviation insurance market, following litigation, settlements and strategic repositioning.
The company highlighted that despite a limited number of renewals in the first quarter of 2026, early indicators suggest that hull and liability pricing will continue to firm, albeit at a slower pace.
“Insurers are likely to target rate increases, starting at around 10% for clean risk, with higher adjustments on prime or distressed accounts. Competitive pressures in the war risk market are likely to continue lower rates, but geopolitical uncertainty could quickly reverse this trend,” WTW explains.
The challenge for insurers is balancing profitability and responsiveness, the company said. For insurance buyers, proactive risk management and transparent data sharing will be key to obtaining favorable terms. At the same time, a broker’s ability to interpret market signals and effectively advocate for clients will remain a key differentiator.
The report points out that the aviation insurance market remains challenging. Insurers are adjusting pricing to protect profitability, while new entrants, backed by experienced underwriters and new capital, are steadily putting pressure on established insurers to capture market share.
“The journey ahead is complex, but it is also full of opportunities for those who are prepared to innovate and collaborate,” WTW added.
WTW concludes that several themes will shape the aviation insurance market in the year ahead.
According to reports, as airlines digitize, cybersecurity is now a key risk, while geopolitical fluctuations will continue to affect risk appetite and pricing.
At the same time, technological disruption from advanced air traffic, drones and autonomous systems adds new liability challenges, while sustainability pressures mean insurers must assess the risks posed by innovations such as electric aircraft and sustainable fuels.
