Aerospace insurance rates are expected to remain stable amid ample capacity, according to a WTW sector update.

Appetite and competition remain strong for attractive business, the broker says.

“Prices might be nudging up a little, but strong capacity and competition means that on occasion we are able to negotiate renewals with flat premiums.

“After a period of increases, we have now seen rates start to flatten out.”

The global broker expects the same next year, despite challenges in sub-sectors such as maintenance, repair and overhaul (MRO).

“Looking ahead to 2025, there are no indications that this will change … we would suggest that the abundant capacity will continue to apply a dampening effect on insurers’ ambitions.”

WTW says it is challenging for MRO operators to get the best out of current conditions.

They have been behind attritional claims such as dropped engines and wings clashing as aircraft are moved into hangars, causing losses of a frequency and magnitude that erode the premium base.

“MROs are making significant efforts to get this attritional loss level in check,” the update says. “This is having some positive effect, but insurers are instinctively cautious, and their reticence remains an obstacle to abundant capacity deployment.”

Click here for the update.