Global conflicts shaping aviation war insurers' response to future losses: Stewarts' Derrick | The Insurer

Global conflicts are increasingly shaping how aviation war-risk insurers prepare for future losses, with the AerCap aircraft litigation in Russia emerging as a key test, according to Stewarts partner Chloe Derrick. While no commercial aircraft are known to have been seized or lost directly from recent hostilities, insurers are watching whether assets could be damaged or effectively stranded in neighboring territories, raising coverage disputes. The Iran conflict has heightened concerns across aviation, marine, cyber, and supply-chain exposures, even as ceasefire efforts and diplomatic talks continue. Derrick said the AerCap appeal, expected to be heard in February 2027, will address how courts determine “total loss” when possession is deprived, following a June 2025 London High Court ruling. She noted that war-risk insurers often argue claimants must show no more than a remote chance of recovery. The outcome could affect airlines and lessors using war-risk policies covering mobile assets, especially where sanctions or government actions create exclusion-driven gaps in standard all-risks coverage.