The private aviation insurance market is shifting again, moving back toward softer conditions after years of tough pricing and tight underwriting. This change is mainly due to more insurance companies entering the market, which has increased competition and pushed premiums down. However, challenges remain as the cost of claims keeps rising.
Jason Riley, managing partner at Acrisure Aerospace, explained that while insurance premiums are dropping, claims expenses are going up. He expects this trend to continue through 2026 and 2027, with insurers facing pressure from both sides.
The market’s ups and downs have been a constant for private aviation, but the COVID-19 pandemic gave the industry an unexpected boost. Demand for private aircraft rose during the pandemic, helping push the insurance market out of a soft cycle that lasted nearly two decades. This led to a hard market phase with higher premiums that ran until late 2024 or early 2025. Now, things are cooling off again.
Riley also talked about how new technology, like artificial intelligence and automation, might help smooth these wild swings in the long run. With better data and faster analysis, underwriting decisions could become more consistent. Still, he warned that because aviation risk often involves rare but costly events, it will take a few years to see how much impact data-driven tools will have.
For now, Riley sees AI as especially useful for brokers. These tools can help brokers better understand their clients and find the best insurance carriers for their needs. But he stressed that human relationships remain crucial in the industry. There is a mix of science and art in securing the right coverage, and people are still needed to bring the “art” side.
Looking ahead, Riley told clients to make the most of lower prices but also to strengthen their coverage. He suggested using savings to increase limits and protect against future market shifts, warning that the current softer market could end quickly. “Those savings over the next couple of years might disappear fast,” he said.
In short, while the market’s easing offers opportunities to save on premiums, it’s wise to prepare for whatever comes next by getting solid coverage in place now.