Geopolitical volatility has fundamentally reshaped aviation risk across Asia-Pacific, as conflict zones have become less predictable and can escalate rapidly, affecting airspace, ground assets and liability exposure with little warning, according to Tokio Marine Kiln Head of Aviation Asia Pacific Nomdo Kruis.
But regardless of conflict, Mr Kruis said the need for air travel will always be there: be it repatriation flights from certain countries, businesspeople or government officials as well as overflights over conflict areas.
He said the key challenge for the market is shifting from a reactive to a more proactive approach. In the past, insurers typically responded after incidents occurred, but there is now growing expectations from both clients and underwriters that real-time intelligence should guide decision-making before losses happen.
He added that tools tracking aircraft movements and airport security conditions globally are becoming essential to underwriting, rather than optional enhancements.
For more insights on this topic, check out our June issue of the magazine, where we cover this topic in-depth.