Aviation Insurer: Expect Rates To Begin Climb in 2026

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.”

On the positive side, Howard sees the market expanding thanks to recent changes such as the newly implemented FAA Modernization of Special Airworthiness Certification rules that add to the types of aircraft falling under the light-sport aircraft classification. This, in turn, increases opportunities for pilots. “The liberalization of these rules should expand the pilot population, increase demand for certain aircraft types, and ultimately increase the overall size of the general aviation market,” he concluded.