Airline Insurance Rates Rose Amid Rising Losses
The airline insurance market has entered a correction phase as attritional claims exceeded $1 billion in 2025.
Updated on Oct. 7, 2026 in Air Travel
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Industry experts report that the global airline insurance market is undergoing a period of correction following a sharp rise in attritional losses. Higher repair costs and longer maintenance cycles for modern aircraft are cited as primary drivers for the necessary rate adjustments.
Why it matters
Airlines face increased operational costs as insurance providers raise rates to maintain market sustainability against rising claims. This shift addresses a historical imbalance where losses have consistently outstripped premium growth.
Attritional claims in the airline insurance market surpassed $1 billion in 2025. These costs reflect the increased complexity of new engine designs and the reliance on specialized, lengthy supply chains for repairs.
The players
Will Green
He serves as the head of the airline division at TMK and provided analysis on current market corrections.
TMK
This is a global specialty insurance and reinsurance group providing coverage for the aviation industry.
The details
Rising repair costs and extended wait times for aircraft maintenance have fundamentally altered the risk profile for insurers. With current policy language remaining decades old, underwriters are adjusting market rates to better account for modern engine technology and loss trends seen over the past two years.
Timeline
Attritional claims exceeded $1 billion in 2025.
A sharp rise in attritional losses occurred over the past two years.
Market conditions were detailed in an industry report released in Q3 2026.
Travel Outlook
This correction marks a return to market sustainability following the historical trend of attritional loss outstripping premium growth. The cycle reflects an effort to realign insurance pricing with the modern realities of aircraft maintenance and global supply chain constraints.
Travelers and aviation stakeholders should anticipate that increased insurance premiums could lead to higher operating costs for airlines globally. While market capacity remains available for carriers with strong loss records, passengers may see these cost adjustments reflected in overall ticket pricing strategies.
The takeaway
The airline insurance sector is undergoing a necessary financial correction to accommodate modern aircraft technology and rising repair costs. Airlines with disciplined loss records remain better positioned to navigate these rate increases compared to those with higher risk profiles.
Further reading
For more on the industry trends affecting international transit, visit Air Travel.
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Do you expect the cost of your insurance coverage to rise over the next year?
