The general and business aviation community can expect insurance rates to begin nosing up as early as the first quarter, given the pressure on the reinsurance market following a “large loss year,” warned Jon Howard, the CEO of Mach 2 Underwriters. “2025 will be the worst loss year for the airline industry in the last decade,” he noted. “The 2026 general aviation insurance market will be defined by regulatory developments, financial pressures, and potential capacity constraints.”
He warned that escalating insurance expenses from supply-chain disruptions and mechanic shortages are exacerbating the large-loss year. As a result, Howard added, “There will be increased pressure on the reinsurance market and large general aviation insurers to cease rate decreases or begin to raise rates. We expect rate increases to begin as early as Q1 2026, though minimal at first.”
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