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flag Airline insurance costs rise due to inflation, aging planes, and rising claims, despite recovery and new tech.

flag Rising claims costs in airline insurance are driven by inflation, staffing shortages, supply chain delays, and complex repairs, with older aircraft and costly composite materials increasing total loss risks. flag Psychological harm claims and "nuclear judgements" exceeding $10 million are pushing payouts higher, while AI aids administration but can’t replace skilled workers. flag Despite post-pandemic recovery and growth in passenger and cargo volumes—especially in Asia Pacific—insurers warn current risk models may be inadequate. flag Digital tools like AI, IoT, and predictive maintenance are improving risk management, but cyber threats and evolving regulations are increasing demand for specialized coverage across commercial, private, and space aviation.

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