New entrants are creating competitive tension amongst the insurers.
The aerospace insurance market remains broadly stable as of the third quarter of 2026, but underwriters have reportedly become more selective when evaluating accounts, according to WTW.
Market conditions remain broadly stable, capacity is still available, and pricing has not moved materially since Q1, according to WTW in the “Aerospace Insurance Market Renewal Outlook: Q3/4 2026) published on 28 September.
Beneath this, underwriters are being more selective and applying additional scrutiny when evaluating accounts, WTW said.
The aerospace insurance market absorbed several significant losses and litigation pressures in recent years, as well as rising costs due to inflation, labor, and parts shortages.
Whilst capacity remains available, new entrants are creating competitive tension amongst the insurers, according to the report.
“The market has therefore expressed concern, less through universal rate increases and more through selectivity, caveats, program structure, wording scrutiny, tighter coverage and internal technical challenge,” WTW said.
A growing number of manufacturers, service providers and aviation-related businesses are re-evaluating whether historic liability limits remain adequate, the report said.
Some major original equipment manufacturers are purchasing higher limits, WTW said. Airlines have also indicated interest in strengthening their excess liability protection.
Buyers are advised not to assume that current conditions will last indefinitely. “Waiting until after a major market correction, or after a loss has changed insurer sentiment, is rarely the most efficient strategy for seeking additional protection,” WTW said.
Risks include claims deterioration, capacity discipline, and geopolitical volatility, WTW said.
The aerospace insurance market covers airports, refuellers, manufacturers, maintenance repair organisations, service providers, and the wider non-aircraft operating aviation ecosystem.