2025 has turned out to be a rough ride for aviation insurers. A flurry of costly airline accidents and soaring claims have thrown off what normally would have been a smooth renewal season. According to Adam Hemingway, who heads Global Aviation and Space at WTW, losses linked to airlines like Jeju Airlines, Air Busan, American Airlines, Air India — and even two cargo‑plane disasters — have delivered a heavy blow. Add to that rising repair bills and inflation, and you’ve got a financial storm.
| Carrier | What Went Wrong |
|---|---|
| Jeju Airlines | Passenger‑plane crash |
| Air Busan | High‑value passenger claim |
| American Airlines | Big passenger claim |
| Air India | Passenger + cargo claims |
| Two cargo planes | Cargo accidents / operational loss |
Yet — surprisingly — premiums haven’t shot up. Why? Because competition is fierce and insurers keep capacity high to undercut rivals. It’s a classic case of demand outstripping risk appetite.
As the final quarter of 2025 approaches, insurers must decide: do they hike premiums and risk losing customers, or do they swallow losses and hope for fewer disasters?
With claims escalating and costs rising, the aviation‑insurance world may be heading into a crunch. If more accidents happen, coverage could become more expensive — or harder to secure. Either way, 2025 might be known as the year that grounded not just planes, but complacent underwriting practices.