Aviation insurance market overview: Q3 2023

Airport runway with many brake marks at Wroclaw airport.

Marsh's Aviation practice has published its latest insurance market update.

The report provides an overview of the general aviation, airline, and aerospace insurance market conditions as we head into the fourth quarter.

Key takeaways:

As we exit the third quarter of 2023, reinsurance costs continue to increase, largely fuelled by the retrocession (retro) market. However, in most cases, the increases are not passed on to insureds, but rather insurers appear to be absorbing much of the cost.
High inflation is impacting operating costs for insureds across the aviation industry, adversely affecting the value of attritional losses.
At an operational level, competition to hire and retain experienced staff continues to impact the post-pandemic return to service. To counter this during the third quarter, several airlines further invested in crew training via new academies and bursary schemes to better manage operational and people risks.

For more detailed analysis on the market conditions, download the report in full.

This report has been produced by Marsh Specialty in the UK. Marsh Specialty is a trading name of Marsh Ltd.

This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modelling, analytics, or projections are subject to inherent uncertainty, and any analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change. LCPA 23/500

“Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.”