Iran War Is Costing Small Airlines $200,000 Daily, Insurer Estimates

The Iran war has had an obvious immediate effect on the Middle East’s aviation insurance market, though the full financial impact remains uncertain. 

While some insurers told Skift that they are reassessing risk exposures and policy wordings, others have said that the region’s major aviation hubs — including in the UAE, Saudi Arabia, and Qatar — remain relatively insulated from conflict compared with historical global hotspots.

Most aviation operators typically purchase two types of coverage. Hull war risk insurance covers damage to ships or aircraft from war, terrorism, political violence, strikes and civil unrest, whether the plane is on the ground or flying over a conflict zone. Meanwhile, war liability cover protects airlines from financial losses tied to passenger claims for bodily injury, third-party property damage, and damage to airside equipment or cargo impacted by war incidents.

These two products tend to be bought separatel