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Aviation insurance: the status
Following the COVID-19 pandemic and the sharp premium increases of the 2019-2023 period, the aviation insurance market is experiencing an upturn. This rebound is driven by the combined growth of airline fleets and passenger traffic, estimated at five billion people in 2025, the highest number of passengers ever transported.
However, this growth remains fragile, with the sector remaining structurally vulnerable because a major event can cost several times the annual global premium. The London High Court's decision perfectly illustrates this imbalance between premiums and claims. While the global annual premium stood at 4.695 billion USD in 2025, the English court has opened the door to a claims settlement in the range of 12 billion USD for the losses of aircraft grounded in Russia.
Compounding this structural imbalance in 2025 is an increase in the cost of claims, due to more expensive repairs and rising prices for spare parts.
The unprecedented geopolitical instability of recent years is a cause for concern among insurers. Armed conflicts in Ukraine, the Middle East, and the Sahel are weighing on the figures, exacerbating the vulnerability of aviation insurers.
Finally, climate and cyber risks continue to shape aviation insurers’ underwriting and pricing policies.
Ultimately, the aviation insurance market is not in crisis; it is adapting, navigating between growth and increased complexity. Good risks continue to benefit from stable capacity and terms, while higher-risk policies remain under heightened scrutiny with targeted rate increases.
