The general aviation insurance market is expected to remain highly competitive during the second half of 2026, with strong capacity continuing to place pressure on premiums, according to Willis Towers Watson (WTW), the global advisory, broking and solutions company.
WTW’s Executive Director of Global Aviation & Space, Alex Trotter, says the market is displaying a mixture of continued soft-market conditions and increasingly varied underwriting strategies. While insurers have significant capacity available, Trotter notes that they are also having to balance the pursuit of premium income with the need to protect longer-term portfolio profitability.
According to WTW, the market’s competitive conditions are being influenced by the continued expansion of Managing General Agents (MGAs), the growing use of facilities and delegated authority arrangements, changing approaches to Long-Term Agreements (LTAs), and the development of new aviation risks linked to drones and advanced air mobility (AAM).
WTW says the movement of experienced aviation underwriters into MGAs has become increasingly significant over the past 12 to 18 months. Although underwriting talent has traditionally moved between established insurers, the growth of specialist aviation MGAs is creating additional sources of capacity and competition.
Trotter says newly established MGAs can have different commercial priorities from established insurers, particularly where they are seeking to build premium volumes, establish market share and develop their position quickly. Depending on the objectives of the MGA and the requirements of its capacity providers, this can lead to broader underwriting appetites or more competitive pricing.
For brokers and clients, WTW says the growth of MGAs provides additional options when placing risks. However, Trotter stresses that the longer-term commitment of the capacity behind an MGA remains an important consideration, particularly where clients require continuity over several years.
WTW also points to the increasing fragmentation of aviation capacity, with traditional insurers now operating alongside MGAs, delegated authority providers and facility-backed solutions. While this can increase choice, Trotter says it can also make the market more complex for brokers and clients seeking to assess the consistency and long-term appetite of individual insurers.
The expansion of facilities is another major development identified by WTW. Lineslips, binders, auto-binding arrangements and other delegated authority structures are increasingly being used to provide access to aviation capacity and streamline the placement process.
According to Trotter, larger brokers now operate multiple facilities across different areas of aviation business, allowing significant volumes of risks to be placed without following the traditional open-market process.
Trotter notes that facilities can provide clients with greater certainty of capacity and a more straightforward renewal process, while insurers can benefit from lower distribution and administrative costs. However, the increasing use of these structures also means fewer risks may be available to insurers relying on open-market business.
This can increase competitive pressure among established aviation insurers seeking to protect premium income and maintain their market positions. Trotter considers the combination of established facility business and new MGA capacity to be an important factor behind the current competitive environment.
Long-Term Agreements also remain available across parts of the general aviation market, although WTW says they are less common than in some previous periods. Current agreements are increasingly likely to include provisions covering underwriting performance, rate reviews or adjustments during the term.
For clients, LTAs can provide greater certainty around future insurance costs, while insurers can gain greater visibility over premium income and client relationships. Trotter says some brokers and clients are also using partial multi-year placements to retain exposure to future market movements.
Under this approach, only part of an account is placed under an LTA, while the remainder is renewed annually. Trotter notes that this can allow clients to retain some potential benefit if market rates continue to decline while reducing their exposure if conditions move in the opposite direction.
The company nevertheless notes that insurers do not always approach LTA pricing provisions in the same way. Some continue to support agreed reductions in later years, while others may reassess their position as renewal approaches, particularly if portfolio performance or wider market conditions have changed.
Trotter states that the treatment of second- and third-year adjustments therefore requires careful consideration. Early discussions between brokers, clients and insurers can help establish how pricing provisions are expected to operate throughout the agreement.
He also says the aviation insurance market is becoming increasingly international as technology, data availability and distribution networks enable insurers to compete across a wider range of territories.
Clients can access capacity from a broader selection of international insurers, while insurers can pursue opportunities outside their traditional markets. Trotter notes that this has increased choice but has also intensified competition for attractive risks.
Trotter states that insurers facing lower premiums on existing accounts may look towards new business to support income levels. This can result in increased competition for accounts with favourable claims histories and established risk management arrangements.
According to Trotter, the combination of regional and international competition can contribute to differences in pricing and underwriting appetite, particularly where insurers are working towards specific growth or premium targets. Despite the broader soft-market conditions, he says premium reductions are not being experienced consistently across all areas of general aviation.
Larger accounts with significant premium volumes are generally attracting the strongest insurer interest. Where loss records are favourable and risk management standards are strong, Trotter says competition can create greater opportunities for clients to secure lower premiums. Smaller and mid-sized accounts may see more limited reductions, however. Insurers need to account for acquisition, underwriting and administration costs, which can restrict the extent to which pricing can be reduced on lower-premium business.
The structure of an account can also influence competition. Trotter says risks with lower limits may attract insurers capable of taking a substantial proportion of the placement, potentially allowing the risk to be completed with fewer participating markets.
He identifies drones and advanced air mobility as areas with potential for further insurance growth. Commercial drone operations are continuing to develop across infrastructure, agriculture, logistics, emergency services and industrial applications.
At the same time, investment in electric vertical take-off and landing (eVTOL) aircraft and wider AAM infrastructure is generating new insurance requirements for manufacturers, operators, investors and other participants. WTW identifies China, parts of the Asia-Pacific region, selected Middle Eastern markets and the United States as areas where investment and development remain significant.
Trotter says specialist MGAs have been particularly active in this area because their structures can allow them to respond quickly to emerging technologies and develop insurance products for risks that are not yet well served by traditional models.
WTW also emphasises the importance of education and specialist knowledge as new aircraft and operating models develop. The company has previously examined how insurance can contribute to the development of eVTOL aircraft and future flight, as well as how insurance programmes need to adapt to changes within the aviation industry.
Maintenance-related losses remain another area of concern for the market. WTW says inflation affecting aircraft components and repairs, continued supply chain disruption and difficulties sourcing parts are contributing to higher claims costs.
WTW has previously highlighted wider workforce pressures affecting aviation, including shortages of pilots and other skilled personnel. Trotter’s assessment places these workforce issues alongside supply chain and maintenance pressures as factors that insurers and operators will need to monitor.
WTW expects the general aviation insurance market to remain well capitalised and competitive during the second half of 2026, but Trotter says the market should not be viewed as uniformly soft.
Instead, the company expects differences in pricing, capacity, underwriting appetite and renewal strategies to continue between insurers and types of account. The growth of MGAs and facilities is changing how capacity reaches clients, while LTAs are being adapted to reflect uncertainty over future market conditions.
At the same time, drones and AAM are creating new areas of potential premium growth, while claims inflation, maintenance costs, supply chain challenges and workforce shortages continue to influence underwriting decisions.
Trotter highlights that insurers will need to balance the pursuit of growth with disciplined portfolio management and sustainable underwriting performance. For brokers and clients, the availability of capacity may create opportunities to secure competitive terms, but the company considers the financial strength, technical capabilities and long-term commitment of individual markets to remain important considerations.
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