Hexiang Insurance Brokers, a unit of Yiren Digital, is stepping into China’s low-altitude aviation economy with newly launched insurance solutions designed for commercial air operators.
Developed in collaboration with Ping An Insurance and PICC, the products aim to provide coverage for aircraft used in tourism, logistics, and urban air mobility.
The rollout began in March 2025 when Hexiang and PICC issued their first policy in this category to Xinjiang Tianying General Aviation. That policy covered Robinson R44 helicopters and included protection for hull damage, liability claims, and professional errors and omissions.
In April, a similar contract was signed with Ping An to insure an Airbus R66, bundling multiple coverages such as aircraft hull, third-party liability, crew liability, and passenger accident. The policy carried a protection value exceeding RMB 17 million, addressing operational needs in the tourism and business transport sectors.
By June 2025, Hexiang was named a council member of the Jiangsu Aviation Industry Association (JAIA), an affiliation aimed at deepening its involvement with stakeholders in China’s civil aviation and drone sectors.
According to the company, this membership is expected to facilitate development of custom insurance solutions for operators of drones, helicopters, and other general aviation assets.
Hexiang has indicated plans to continue product innovation, with particular focus on insurance services for electric air taxis, AI-powered flight systems, and drone-based logistics platforms. These efforts are part of a long-term strategy to align with the needs of China’s evolving low-altitude aviation economy.
The move comes as Gallagher’s Q1 2025 “Plane Talking” report highlighted ongoing volatility in global aviation underwriting.
Although capacity remains in place, premium levels are under strain due to large claims such as the Jeju Air incident, reportedly valued near US$300 million. These losses, combined with a rise in smaller attritional claims, are affecting profitability forecasts for 2024 and 2025.
Gallagher noted that net premiums for airline hull and liability lines reached US$1.65 billion in 2024, but current rate levels may be insufficient to meet long-term profitability thresholds. Key concerns include social inflation in court awards, increasing aircraft values, and unresolved risks related to the Russia-Ukraine conflict.
Insurers are watching capital allocations closely, with some retrenching from direct aviation markets. Swiss Re’s withdrawal is one recent example.
Still, the general aviation market continues to show surplus capacity, especially in Asia, where regional operators may benefit from broader terms and competitive pricing.
