How high-profile aviation disasters in 2025 could affect insurance results

Insurers are keeping a close eye on the number of high-profile aviation crashes this year, both globally and in Canada, which could translate into to tougher underwriting results, says Bernard McNulty, chief agent of Allianz Commercial in Canada.

He spoke with Canadian Underwriter following the RIMS Canada Conference in Calgary in September.

It’s been an above-average year for commercial aviation losses, McNulty noted.

As of September, nine accidents and 404 fatalities involving commercial passenger and cargo flights have been reported by the Flight Safety Foundation in 2025, per its Aviation Safety Network database. The annual average over the past five years has been seven accidents and 161 fatalities.

Underwriters are applying lessons from these incidents to mitigate further losses. “We are working with the clients on any [learnings] that we can add.” says McNulty. ”One key best practice for aviation clients to follow is a review of their safety and training protocols.  

“We’re lucky because we insure airlines all over the world, and if there’s some shared best practices that we can pass along to a domestic client, then we do that.”

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One important safety criterion is called “time in type,” which refers to the logged hours a pilot has spent operating a specific aircraft. To ensure their proficiency, pilots must earn a specific number of hours controlling different types of aircraft.

“Pilots are getting younger, and that’s been happening for a few years,” says McNulty. “So, we look at the number of hours that a pilot has been on that type of aircraft.”

However, he emphasizes no losses have been linked to any non-compliance with licensing requirements.

Although statistics vary, human error plays a role in between 53% and 80% of all aviation accidents, according to the Federal Aviation Administration, and National Transportation Safety Board.

Wildfire response causing aviation loss

Record wildfire seasons in Canada and California have also contributed to aviation loss in 2025, says McNulty.

Canadian-owned and operated water bomber planes working to put out flames during the 2025 L.A. wildfires have garnered media attention for incurring damages.

“We saw some activity in the water bombers in 2025,” McNulty says. “Canada is known for its expertise in building, designing and running water bomber fleets. We saw some [Canadian] fleets working in California. But even the possible losses that those fleets might incur aren’t unusual.

“That’s risky business in the aviation space to fly over that amount of heat with heavy loads.”

Alyssa DiSabatino

Alyssa Di Sabatino has been a reporter for Canadian Underwriter since 2021, covering industry trends, market developments, and emerging risks.