Aviation insurance rates hit a low point, but a shift is coming

^{By Chris Davis. Originally published on Insurance Business Magazine on July 22, 2025.} 

Aircraft insurance in Canada is currently enjoying its most competitive stretch in five years – but that window may be closing soon. Caleb Winterburn (pictured), vice president of aviation insurance at Covalen, warns that while capacity remains high, charts suggest a market reset ahead. 

“We may see increases in the next two years,” Winterburn said.

“The insurance market, especially in aviation, typically cycles between soft and hard markets every seven to 11 years.” 

Brokers racing for speed and transparency

Underpinning the soft market is fierce competition intensified by tech innovation. Quotes that once took days are now issued in as little as five minutes. 

“Previously, it could take anywhere from 24 hours to a week to get a quote… now we’re able to provide quotes in 60 minutes or less, sometimes even as fast as five minutes,” Winterburn said. 

For brokers, this isn’t just about speed – it’s a competitive differentiator. Faster turnaround translates into faster policy issuance and faster flights. 

Canadian aviation on the upswing 

Winterburn, a licensed fixed-wing and helicopter pilot, said that pilot licensing dropped sharply during the pandemic. But demand quickly rebounded as private buyers – especially cottage-bound professionals – returned to the market. 

Transport Canada data shows over 37,000 registered aircraft and 25,000 licensed pilots in Canada by the end of 2023. Aircraft movements rose 5.5% to 5.5 million – nearly 90% of pre-pandemic levels, according to the Transportation Safety Board. For brokers, that signals rising demand and renewed risk exposure in aviation. 

Underinsurance remains a blind spot 

While overall market conditions remain competitive, Winterburn warned that many owners – especially those using generalist brokers – gravitate toward liability-only policies, leaving significant coverage gaps. 

“Non-specialist brokers often quote very high premiums for comprehensive packages,” he said. “Without comprehensive coverage, there’s no salvage recovery.” 

Covalen has responded with a joint Aviation Canada Insurance Program – developed with COPA – to fill these gaps. It offers features like 100% hull value for forced landings and avionics protection, priced accurately to drive uptake. 

Climate and underwriting trends 

In hail-prone provinces such as Alberta, insurers increasingly offer hangar discounts – rewarding risk mitigation through storage. 

Underwriting is becoming more nuanced. Data for common models like Cessna 172 or Piper PA-28 now inform pricing – but Winterburn stressed that experienced underwriters offer added value. 

Drone insurance enters maturity 

After the drone boom of 2014-18, demand has matured. Winterburn explained: “The bigger winners were often the ones offering drone pilot licensing courses.” 

Now, commercial use in real estate and agriculture is leading to more stable pricing and coverage frameworks. 

Transport Canada's role in setting baselines 

While Transport Canada establishes operational minimums, it’s the insurers who take those standards further. “Insurance companies then build on these standards, often requiring more stringent conditions to further reduce risk,” Winterburn said. 

That layered approach has become essential in a landscape shaped by tighter margins, rising claims, and growing owner sophistication. And for now, competitive pricing remains – but not without caveats. 

As Canada’s aviation insurance landscape shifts, brokers find themselves at the intersection of pricing pressure and growing client expectations. Those who move beyond speed to offer tailored, risk-informed guidance are most likely to retain trust and win new business. 

Winterburn believes the current market represents both opportunity and warning. “We’re in the most competitive aviation insurance environment of the last five years,” he said. “But things are beginning to level off.”