2026 MARKET TRENDS

Personal Aviation

Key Takeaways

Market remains competitive as new Managing General Agents expand capacity, accelerate product development and broaden coverage options
Shift toward fractional ownership continues, driven by lower capital requirements, streamlined operations and evolving owner preferences
Carriers are adopting AI-enabled analytics to refine underwriting accuracy, strengthen risk selection and incorporate usage-based insights
Regulatory updates influence underwriting, with MOSAIC expanding Light Sport Aircraft privileges while carriers apply stricter pilot warranties and medical requirements to manage exposure
Repair and maintenance pressures elevate severity, driven by parts shortages, limited skilled labor and extended repair timelines across the aviation sector

The continued growth of Managing General Agents contributes to faster product development, broader coverage offerings and heightened competition.

Market Conditions

The personal aviation market remains competitive heading into 2026, supported by expanding capacity and the entrance of several new Managing General Agents. MGAs act on behalf of insurance carriers and have delegated underwriting authority, allowing them to price risks, issue policies and develop products more quickly than traditional programs. Their continued growth in aviation contributes to faster product development, broader coverage offerings and heightened competition.

Owners continue to shift from whole aircraft ownership toward fractional programs, driven by lower capital requirements and simplified operations. Carriers are adopting AI-enabled analytics to refine underwriting accuracy, strengthen risk selection and incorporate usage-based insights.

Regulatory changes continue to influence carrier behavior. The MOSAIC (Modernization of Special Airworthiness Certificates) rule is expanding the Light Sport Aircraft category and broadening sport pilot privileges. While the FAA sets minimum standards, carriers continue to apply stricter pilot warranty requirements and medical certificates to maintain safety and manage loss exposure.

Repair and maintenance pressures remain elevated across the aviation sector. Parts shortages, limited skilled labor and longer repair timelines are increasing severity and influencing carrier appetite for certain aircraft types.

Year-to-Year Differences

Despite these pressures, 2026 is expected to mirror 2025 conditions. Rates are expected to remain stable due to competitive capacity and continued entrance of new MGAs, which is driving faster product development and broader coverage options. Owners with strong safety records and limited loss history continue to benefit from favorable pricing.

Key Drivers

Several factors continue to shape aviation underwriting and pricing conditions heading into 2026.

International markets continue to face upward pressure due to rising repair costs, higher reinsurance pricing and geopolitical volatility. Hull war coverage remains particularly sensitive to global tensions.
In the U.S., the influx of new carriers is supporting strong competition and creating a comparatively soft environment for many insureds. Owners with strong safety profiles are seeing stable or decreasing premiums.
While natural disasters do not directly dictate aircraft insurance pricing, severe weather may influence deductibles, preparedness requirements or temporary binding restrictions. Some carriers also offer relocation or storm-specific coverages to help owners manage seasonal weather risks.

Claims Trends

Claims severity continues to rise across personal aviation. Repair costs remain the primary driver, influenced by supply chain challenges, limited skilled labor and the complexity of modern aircraft systems. These pressures are turning more repairable incidents into total-loss outcomes, and some carriers are avoiding certain makes and models due to parts availability concerns. Liability losses are also increasing as social inflation fuels more litigation and larger awards, including claims for non-physical injuries. Ground handling incidents remain costly as well, especially for aircraft constructed with composite materials where even minor damage can result in high-severity repairs.

Rate Outlook

Umbrella insurance rates are expected to remain firm heading into 2026 as carriers respond to rising claim severity, continued social inflation and pressure from nuclear verdict trends. Capacity for higher limits remains constrained, particularly for auto-heavy households and those in high-severity jurisdictions. As a result, disciplined underwriting and increased reliance on the E&S market will continue.

Impacts & Customer Considerations

Owners can take several steps to strengthen their insurance position and manage costs heading into 2026. Proactive planning, strong pilot qualifications and informed aircraft choices can meaningfully improve insurability and support more favorable premium outcomes.

Secure qualified pilots and training availability early, as training capacity remains constrained and delays can ground newly purchased aircraft

Maintain recency in the aircraft flown, complete initial or recurrent training and pursue additional ratings to demonstrate a strong safety commitment and potentially qualify for premium savings

Understand how aircraft type and complexity influence pricing: simpler, fixed-gear single-engine aircraft carry lower premiums, while higher-horsepower or specialty platforms require more tailored underwriting

Engage an experienced aviation insurance broker to navigate aircraft-specific considerations, customize coverage and manage costs as market conditions evolve

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