Gallagher Speciality | Plane Talking Q4 2025

As 2025 drew to a close, the aviation and aerospace insurance market found itself balancing resilience with restraint.

A year shaped by high-profile losses, elevated engine repair costs and geopolitical volatility has reinforced the need for disciplined underwriting and sharper risk selection.

While capacity remains available across most lines, pricing and terms continue to reflect a market acutely aware of its exposure to systemic shocks.

Airline insurance renewals remain sensitive to loss experience and jurisdictional complexity, particularly where US liability regimes influence negotiations.

At the same time, claims inflation, driven in part by ongoing engine maintenance and supply chain disruption, is challenging traditional pricing assumptions and technical models.

Beyond the airline segment, general aviation faces ongoing pressure as insurers recalibrate appetite and adjust to shifting risk profiles. In aerospace manufacturing, performance has demonstrated measured resilience despite global economic uncertainty.

Meanwhile, developments in carbon markets such as the phased implementation of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is introducing new compliance considerations for operators and their insurers.

The space market, following a profitable period, is transitioning from retrenchment to renewed competition, though sustainability of returns remains under close scrutiny.

Together, these trends underscore a sector adapting cautiously to complexity while preparing for the volatility that may define 2026.

Explore Plane Talking, Gallagher Specialty's aviation risk publication delivering in-depth analysis, emerging market trends and expert commentary across the aviation and space sectors and stay informed on the forces shaping underwriting, claims and capacity worldwide.

Download Plane Talking Q4 2025