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