09 January 2025
General Aviation Market Update Q4 2024
As we enjoy the Christmas and New Year break, we have a small window in which to reflect, upon 2024. We also have the opportunity to identify the challenges which may lie ahead, during 2025, for both operators and the General Aviation (GA) insurance market, more broadly.
Having the time to reflect upon 2024 has allowed us to revisit the predictions, proffered in previous editions of this publication, as well as those reported in the wider media.
It had become clear, towards the end of 2023, that the General Aviation insurance market would face significant rating challenges, as a result of the abundance of available capacity in the sector. This abundance of capacity has allowed clients to review their aviation insurance providers and take advantage of cost reductions and obtain broader coverage.
The aviation Hull War sector has not been subject to the levels of rating volatility, seen in the Hull All Risks sector and continues to remain relatively stable (for General Aviation buyers). It is important to note, however, that geopolitical events, anticipated or otherwise, can change the landscape for buyers, with little or no advance notice. Coverage can also be curtailed or cancelled at short notice and clients need to be acutely aware of the coverage which they are afforded, and how this might be affected as a result of potential geopolitical events.
Despite the market remaining extremely competitive, broadly speaking there is a general sentiment that rating adequacy is still at a level whereby insurers can make an underwriting profit, in those core segments of the book.
What will the 2025 rating environment look like?
Rating across all segments of the Aviation Insurance industry is ultimately driven by available capacity. One can, quite accurately, track hard and soft cycles, in line with increases and reductions of capacity, in the class.
There has been much speculation regarding the future availability of capacity, across all classes of the Aviation Insurance market, once the full impact of the settlement of claims, arising out of the Russian invasion of Ukraine is finalised. There are as one might expect, significantly contrasting views as to the impact these claims will have on the entire aviation insurance market and more specifically on the General Aviation segment.
During 2024, a significant number of operators took advantage of the soft market conditions and were able to secure multi-year placements, either for all, or part of their programmes, to hedge against any potential rate increases in 2025.
Over recent years, a significant number of high-profile insurers, have re-balanced their Aviation portfolios and General Aviation has become a core and growing component, of their books.
General aviation is still attracting insurance capacity with many insurers looking to the segment for continued growth in 2025, organically, by way of acquisition or by deploying capacity through alternative distribution networks.
There are far too many financial, natural and geopolitical events, to contemplate, which might affect the availability of insurance capacity, but all things being equal and in light of insurer growth aspirations in the segment, 2025 is still anticipated to be a good year for General Aviation insurance buyers.
General Aviation outlook
As ever, the future outlook is littered with caveats. As I write, California is suffering from severe wildfires in December, the Russia-Ukraine War is ongoing and the political tension in the Middle East shows little sign of easing.
Despite the challenges presented, the General Aviation insurance market continues to adapt and evolve, to anticipate our clients’ needs.
We are constantly reviewing our offering and that of the market and ensuring that clients are purchasing products which will provide appropriate coverage both now and, in the future as their operations evolve.
The General Aviation market is as strong as it has ever been, and that trend looks to continue into 2025.
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