In a fast-changing aerospace sector, shared knowledge is our strongest asset – IUAI

Despite recent geopolitical tensions and market uncertainty, the trajectory for global aerospace recovery and expansion remains firm. Strong fundamentals, from unprecedented order backlogs to a resurgent aftermarket, continue to signal sustained growth.

Supply-chain bottlenecks are also beginning to ease, albeit in a gradual and uneven way, but nevertheless this supports some cautious optimism for production ramp-ups across 2026.

For aerospace insurers, this growth dynamic introduces a complex set of considerations.

Exposures are increasing and evolving across nearly all aviation and space segments, accompanied by challenging loss experiences in some classes, the continuing impact of inflation, and the need to assess returning capacity within an environment of rapidly developing risks.

These factors reinforce the importance of robust technical analysis and a shared, data-driven understanding across the market to ensure that underwriting remains aligned with the true nature of today’s exposures.

As we look ahead to 2026, forecasts point to a continued ascent for commercial and general aviation. Rising production rates, digital transformation, and strong demand from airlines and operators underpin a robust global outlook.

Industry projections suggest aerospace-company revenues will grow by more than 12% in 2025, with aircraft deliveries rising by over 20%, and this momentum is set to extend into 2026.

Fleet renewal programmes, long-term backlog commitments and growth in general aviation, from private jets and helicopters to drones and eVTOLs, are reshaping the scope of insured portfolios.

Evolving Risks

For insurers, these shifts translate into larger fleets, broader operational profiles and deeper accumulations of risk. The general aviation segment in particular is evolving rapidly: urban air mobility concepts, drone networks and hybrid-aviation platforms introduce new operational and regulatory considerations.

The diversity of aircraft types now in use, from ultralights to high-performance corporate aircraft, requires underwriting approaches that look beyond traditional hull and liability frameworks to assess new patterns of utilisation, maintenance, certification and system integration.

At the same time, the aerospace manufacturing and supply-chain ecosystem is undergoing its own transformation. New materials such as ceramic matrix composites, advanced alloys and additive-manufactured components are reshaping production methods.

Digital-thread workflows and interconnected supply chains promise efficiency, but they also introduce new vectors for defect, disruption and liability.

Product-liability exposures are becoming more intricate, and even minor component failures can trigger far-reaching claims consequences. Airports, too, face evolving infrastructure and operational challenges that carry implications for liability, business interruption and claims defensibility.

In the space sector, activity is accelerating at extraordinary speed. Commercial launch services, mega-constellations, crew and cargo missions, and early developments in space tourism are redefining the frontier of aerospace risk.

With more hardware in orbit, increasing launch cadence and growing commercial dependence on space-based infrastructure, insurers face a broader suite of exposures both pre- and post-launch. Regulatory frameworks, indemnity structures and liability regimes are still evolving, and coverage design must adapt in parallel.

Cyber and Digital Risks

Cyber and digital risks also remain firmly at the top of the agenda. Aerospace is one of the most connected, data-rich sectors in the world, making it a prominent target for cyber threats, ransomware, system interference and supply-chain cyber compromises.

At the same time, sustainability and ESG considerations, from emissions regulation to alternative propulsion systems, are increasingly influencing underwriting strategy. These emerging, non-traditional risk vectors demand continuous learning, coordination and adaptability across the insurance community.

On the claims side, evolving exposures are mirrored by evolving legal and regulatory frameworks. Jurisdictional shifts, international convention developments and the rise of litigation finance are reshaping the claims landscape.

Major losses involving aircraft, space systems or airport infrastructures are increasingly global events, involving multi-layered liability, diverse regulatory environments and complex settlement dynamics. Insurers must anticipate broader definitions of liability, including cyber-related risk, and prepare for more interconnected claims scenarios.

Across 2026, the aerospace sector will continue to expand, but with that growth comes a corresponding evolution in risk.

Whether underwriting a jet fleet, a drone-delivery network, a satellite constellation or airport operations, the fact remains: we must be collectively prepared for the risk landscape ahead. With exposures rising and pricing pressure returning in parts of the market, the need for robust technical understanding has never been greater.

A global Challenge and Opportunity

IUAI’s membership, representing around 90% of worldwide aerospace insurance capacity, sits at the heart of this global challenge and opportunity. The scale of what we underwrite is vast; the pace of change around us is accelerating.

As President of the IUAI, I cannot emphasise strongly enough the importance of knowledge-sharing, education and technical collaboration across our global community. Only by pooling insight, exchanging data, and engaging deeply with emerging risk themes can we build the resilience and capability required for the decade ahead.

I invite all our members, partners and stakeholders to continue contributing their expertise, to our Study Groups, to our discussions, and to the wider aerospace insurance dialogue. Together, through shared knowledge, we can shape a safer, smarter and more forward-looking future for aerospace insurance.

By Ulla Norrhaell, President of the International Union of Aerospace Insurers (IUAI)