Airlines Face Rising Insurance Premiums Due to Middle East Conflict
Airlines across Asia are experiencing increased operational and insurance pressures due to ongoing conflict in the Middle East. According to Stephen Rudman, head of Marine and Regional Aviation Lead, Asia at Aon, the situation is creating a complex risk environment, affecting flight operations and cost structures. Airlines have been forced to adjust routes as parts of the Gulf and wider Middle East airspace become restricted or carry higher risks. These detours result in longer flight times, higher fuel consumption, and payload limits on long-haul services, particularly impacting Europe–Asia and Africa–Asia routes. To manage these challenges, airlines are increasingly using digital tools and real-time data, treating geopolitical risk as a permanent feature of the operating environment. Insurers and brokers are collaborating with airlines to develop programs that reward better risk management, including structured routing policies and advanced planning systems.