Bizjet insurance competition strong but beware new risks: Gallagher
Competition to insure business jets remains strong but firms should check their policies reflect the emerging risks from environmental protests and cybersecurity, according to aviation insurance specialist Gallagher.
“Arranging insurance for a business jet is a relatively easy process for an experienced aviation broker because of the nature of the operational risks, the values at risk and the competitive insurance market for this kind of business globally,” said Matthew Day, director of General Aviation at Gallagher Specialty.
Business jets are generally considered a highly attractive risk to many aviation insurers as the aircraft are highly maintained, generally fly fewer hours/cycles than commercial aircraft and can be more flexible in their operations, he told CJI. Also, Business aircraft operators have a good operational safety record.
“There can be strong competition between insurance providers at the national, regional and international levels to provide insurance for business jets; although it remains critical to partner with the highest quality broker and insurance carriers, for their services and financial security,” he said speaking after the publication of the company’s third-quarter (Q3) report Plane Talking – a specialist risk publication for the aviation sector.
Hull war insurance
Core policy coverages for a business jet operators have not changed in recent years – hull and liability insurance; hull war insurance. Political uncertainties are not diminishing and an operator should, as a matter of standard procedure, access specialist aviation risk intelligence services such as Osprey Flight Solutions, he advised.
While the general risk profile for business aircraft remains unchanged, Gallagher advises insurers to consider environmental protests and cybersecurity. “Business jets have most recently been seen as fair target for environment protests, but enhanced ground security remains the key strategy to minimise these incidents,” said Day.
Enhanced ground security procedures is a major consideration at the present time, he added. “As many corporate jet flights could be considered as ‘discretionary’ rather than ‘essential’ there is always the option to not operate a flight if the operator or passengers have concerns,” he told us.
Cyberattacks is the second emerging threat that deserves consideration by insurers. These depend on the victim having something of value that the hacker can exploit. “So, it’s logical to consider that business aviation, primarily serving the global high net worth community, are potential targets,” said Day.
Gallagher identifies air-to-ground electronic connectivity as a potential weak point that operators and owners should consider. In response, specialist aviation telecommunications suppliers, such as Gogo, are actively providing data security solutions to the business aviation community, said Day.
Softening rates
Commenting on the general aviation insurance outlook, it is hard to predict anything other than the trend of softening rates continuing until the end of the year and into 2026, said Philip Stafford, senior partner, Gallagher Specialty. “Although there is a general feeling amongst insurers that current pricing levels are not sufficient to return an acceptable underwriting profit, there remains significant overcapacity in the sector,” he wrote in the insurer’s quarterly market report.
The fourth quarter of 2025 is expected to conclude another good year for the General Aviation insurance buyer – barring a significant market-changing loss and/or a significant reduction in available capacity. “In 2025, we have seen several buyers taking advantage of multi-year policy periods offered by insurers who are looking to partner on a long-term basis, and we believe that this trend will continue. Industry stakeholders should prepare for eventual market withdrawals and pricing corrections,” he wrote.
While persistent overcapacity may benefit aircraft owners and operators in the short term, it presents long-term challenges for the stability of the General Aviation insurance marketplace, he warned.
Claims growth
Similar caution comes from Peter Elson, the insurer’s CEO Aerospace executive chairman in the report’s executive summary. Many agree that that certain parts of the aviation insurance market have been regularly under-performing, with premium volume not keeping pace with the level of claims growth, he argued.
“The year-end insurer results and 1st January reinsurance renewals will set or refine the tone for the forthcoming year, at least to the extent that future capacity, underwriting business plans and pricing discipline catch up with the reality of the market results and trends,” wrote Elson. “With this in mind, we must emphasise to buyers the importance of retaining perspective and focusing on long-term value from their insurance partners and intermediaries.”
Read Gallagher’s third-quarter market report Plane Talking here.
Meanwhile, don’t miss our story on insurance rate trends in the latest edition of Corporate Jet magazine.
