Geopolitical instability most significant threat for aviation sector in next five years

By Michael Jones

June 25 - (The Insurer) - Geopolitical instability and war is the most significant threat facing the aviation sector over the next five years, an International Union of Aerospace Insurers survey said on Wednesday.

Malicious cyber incidents, increasing cat events and lack of skilled personnel were highlighted as the next most pressing threats facing the aviation sector.

The IUAI-conducted survey polled 84 senior professional in the aviation (re)insurance sector, and also highlighted litigation trends and nuclear verdicts as a key threat to the sector.

Claims inflation and market conditions/rate adequacy were the two greatest challenges facing aviation (re)insurers in 2025, the second year running that these two factors were listed as the two most pertinent challenges.

Jurisdictional issues related to claims handling was also introduced into the top challenges facing the industry, with 35.7% of survey respondents flagging it.

AI was the opportunity that survey respondents ranked highest for aviation (re)insurers over the next five years.

This was followed by new aircraft types, alongside UAVs and eVTOL, and what the survey described as "new and growing demand for aviation services".

Attritional ground incidents, air traffic control issues and runway incursions were the three risks for aviation operators/airports that most urgently need addressing in 2025, the survey said.

Malicious acts and GNSS spoofing remained in the top ten risks that urgently need addressing, but both dropped down by three places.