Q3 2025 Renewal Overview

Q3 remains the busiest renewal period for the Aerospace Manufacturers and Infrastructure sector, with a significant number of major OEMs and service providers renewing around July 1st.

Despite insurers' noises that the continued increasing cost of claims (aircraft repairs and liability awards) and the increases in reinsurance costs are applying pressure to their profit margins and that their focus would be on profitability and premium adequacy, the general expectations as we headed into the third quarter were for continued favourable market conditions. Stable supply and demand dynamics helped maintain competitive conditions.

Even clients with active loss histories or operating in traditionally challenging segments (such as MROs and ground handlers) benefited from relatively smooth renewals. This reflects a market that continues to reward well-prepared and strategically positioned buyers.

Gallagher’s ability to use the analytical tools we have at our disposal, coupled with our specialist knowledge, allowed us to design and deliver broking strategies that maximised the prevailing market conditions, leading to some modest single-digit premium reductions.

We have also seen continued investment in talent within the marketplace. This has led to an increase in the competitive environment with broking houses and insurers looking to grow or maintain market share. We also have a desire from some newer entrants to the market to start to challenge the ‘established players’ for lead positions. They are looking to do this by way of pricing or improvement and expansion of coverage, which is placing increased focus and pressure on renewal discussions with lead markets.