The international insurance and reinsurance sectors remain exposed to significant uncertainty following the grounding of more than 400 leased aircraft and aviation-related assets in Russia, following sanctions imposed in early 2022.
According to a post by WTW, these events have triggered a complex series of claims under contingent all risks and hull war insurance policies, many of which are governed by different legal jurisdictions.
Among the key legal developments was a June 2025 ruling from the UK High Court, which found that the aircraft losses were covered under the contingent section of hull war policies. The case involved 147 aircraft and 16 engines, with an insured value of approximately US$4.5 billion, though settlements during the proceedings reduced the claims in question to around US$3 billion.
The court found that the proximate cause of loss was the Russian legislation passed on March 10, 2022, which barred the export of aircraft and engines, effectively nationalising the assets. This finding helped resolve debate over the relevant date of loss, a central point for determining coverage under time-sensitive aviation insurance policies.
While the ruling aligned with industry expectations that war policies would respond, it also confirmed that coverage would be subject to aggregate limits. Insurers involved in the proceedings may still appeal, particularly those whose liability exceeded applicable caps. Some lessors may also seek further redress depending on recovery outcomes, WTW said.
The judgment has been closely watched by insurers, brokers and reinsurers due to its implications for both policy response and market practice, according to WTW. In the aftermath of the initial losses, insurers had already acted by withdrawing capacity and tightening terms. Confiscation and seizure sublimits were introduced or reduced, and “theft” aggregates have appeared in some all -policies to address potential grey areas in wording interpretation.
Reinsurers are also reviewing exposures, especially under excess of loss treaties. While quota share reinsurance is expected to respond to the aircraft claims, excess layers may be affected by how the event is defined and the applicability of aggregation clauses. Some reinsurers may dispute their share of the loss, which could lead to further legal action and affect recoveries for primary insurers.
The potential for cross-line exposure is also under review, as several carriers active in hull war are also exposed to aviation liability, general aviation, or all risks portfolios. This has led to broader underwriting caution across aviation classes, with implications for pricing and capacity.
A separate UK legal case, set for trial in autumn 2026, will address whether lessors can access insurance policies held by Russian airlines and their reinsurers. The outcome may further influence the scope of recoveries and drive further shifts in wordings and market terms.
As legal proceedings continue, WTW said insurers and reinsurers remain focused on contractual interpretation, aggregation clauses, and reinsurance structuring - factors that will shape the longer-term impact of the Russian aircraft losses on the global aviation insurance market.
