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.

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