The outlook for aviation insurance remains positive, a Marsh mid-year update says.

Capacity is healthy despite one reinsurer quitting the market, and premiums are reducing. New underwriting agencies brought additional capacity in the first half, putting downward pressure on rates, the global broker says. 

Demand for new aircraft increased as airlines replaced older fleets and start-ups entered the market. 

In the reinsurance market, major risk exposures continued to increase in the first half, but capacity remains for most segments, supported by increased appetite.