Geopolitical instability has been identified as the biggest threat to the aviation sector by insurers, according to a new industry survey.

Two-thirds of respondents working for international aviation re/insurers put the impact of war and international conflicts at the top of their list of concerns. Their views were sought during research conducted by the International Union of Aerospace Insurers’ Cyber and Emerging Risks Study Group, which is chaired by Tom Hughes of the International Underwriting Association and Florian Zierer of Swiss Re.

Other risks identified by the group were an increase in natural catastrophes, supply chain issues, a lack of skilled personnel and malicious cyber attacks. A total of 84 senior professionals in the aviation re/insurance sector were polled for the survey.

Tom Hughes, director of underwriting at the IUA, said: “Aviation insurers are monitoring closely the development of many new technologies and emerging threats. The use of artificial intelligence, new aircraft types and the transition away from fossil fuels all have the potential to transform risk profiles in what is a fast-changing industry."

Claims inflation emerged as the most significant challenge facing aviation insurers and reinsurers themselves. For airports and aviation operators, the highest priorities were attritional ground incidents, air traffic control issues and runway incursions.

Tom Hughes and Florian Zierer took over as co-chairs of the IUA Cyber and Emerging Risks Study Group in March this year. The group was originally formed in 2018 to examine the impact of emerging risks on the aerospace sector.

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