This article summarises the key insurance‑relevant developments and outlines what aviation customers must consider immediately.
Read the full introduction to our series of articles on the Middle East conflict .
The conflict in the Gulf region is creating an increasingly unstable environment for global aviation. For businesses operating in Central and South‑East Europe (CSEE), the implications extend far beyond airspace closures or short‑term operational delays. The conflict is reshaping insurance markets, tightening underwriting conditions, and placing new demands on policyholders who continue to operate flights to, from, or near the affected areas.
This article summarises the key insurance‑relevant developments and outlines what aviation customers must consider immediately.
Situation of Passengers (Montreal & EU Law)
Under the Montreal Convention, airlines are liable for actual damage caused by delays unless they prove that all reasonable measures were taken or that the situation was unavoidable. War events, including closed airspace and military actions, constitute force majeure, which exempts airlines from liability for war‑related delays.
Similarly, under EU regulationsi, passengers are entitled to fixed compensation only when delays are not caused by extraordinary circumstances. War, geopolitical instability and military measures qualify as extraordinary circumstances, exempting airlines from compensation payments. However, carriers must still fulfil their duty of care by providing meals, accommodation and rebooking options
Effects on Insurance Coverage
The conflict has heightened risk levels for aviation operations, leading insurers to reassess their exposure across the region. Loss of revenue, stemming from cancellations, diversions or operational disruptions, remains outside the scope of liability and hull insurance. At the same time, war‑risk premiums are rising, with insurers tightening capacity and reviewing requests with increasing scrutiny.
Despite these pressures, war cover under AVN52E/F (Third‑Party Liability) and LSW555D (Hull) remains in place. None of the automatic termination triggers (such as war between major powers, nuclear detonation or requisition) have been activated. Termination would require active notice of seven days, and no insurer has invoked this option so far.
Flights to the Region: What Is Insured?
Flights into the region remain insurable only under strict conditions. Each individual flight requires explicit advance approval from the insurer. Underwriters are assessing each request on a case‑by‑case basis and frequently applying additional premiums. Pre‑existing exclusions for destinations such as Iran, Iraq, Israel, Lebanon, Libya, North Sinai, Syria and Yemen remain fully in force. Insurers are continuously monitoring the situation, policy conditions and market capacities may change with little warning.
Key Takeaways for Policyholders
For aviation customers in CSEE, war‑risk cover technically remains available but under significantly stricter and more expensive conditions. Flights to affected areas are still possible but require proactive coordination with insurers, careful planning and clear communication. As the conflict evolves, policyholders should expect ongoing adjustments to premiums and conditions and remain in close contact with their insurance partners to ensure uninterrupted protection.
Patrick Kremer
Specialist Aviation
GrECo Group
T +43 664 466 2180
