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Stranded assets, soaring claims: Risk management lessons from the Russian aviation lessor dispute

The Russia-Ukraine conflict resulted in a fundamental disruption to the global aviation insurance market.

07/04/2026 · 3 minute read

The Russia-Ukraine conflict resulted in a fundamental disruption to the global aviation insurance market.

The immediate insurance consequences were stark: coverage was restricted, key market participants ceased writing the class of business entirely, and pricing for contingent policies skyrocketed overnight.

The general, non-immediate consequences proved equally significant. Claims associated with the deprivation of possession of lessors’ aircraft were not paid by insurers.

What followed was a contested and costly legal battle between insurers and lessors over whether the losses were insured and, if so, whether liability fell under all-risk or hull war policies. Several years of litigation ensued, culminating in a landmark UK High Court of Justice judgment concluding that the losses constituted hull war claims and clarified the application of the “grip of peril” doctrine.

The ruling remains relevant, as recent events have once again brought geopolitical risk to the forefront.

Beyond the treatment of losses, the conflict highlighted how traditional risk management frameworks can evolve and improve, with an opportunity to provide deeper support for lessors facing perhaps a more complex operating environment. 

Following the 2022 invasion of Ukraine and subsequent sanctions, over 400 Western-owned aircraft, valued at more than US$12 billion, were stranded in Russia. A 2025 UK High Court of Justice ruling, which concerned 147 commercial aircraft and 16 engines, with a total estimated insured value of roughly US$4.5 billion, found that insurers were liable for war risk claims.

A fundamentally altered market

Prior to the Russia-Ukraine conflict, the aviation leasing insurance market operated within relatively stable, predictable parameters. Unaggregated blanket policies were common, and pricing reflected few losses. However, the conflict produced a new and more complex risk landscape. Lessors faced legal and practical barriers to repossessing aircraft from sanctioned jurisdictions.  Geopolitical instability put pressure on asset valuations, multi-jurisdictional sanctions created compliance complications, and the insurance market repriced risk in response to losses that, in several cases, remain subject to ongoing litigation.

These evolving factors continue create potential legal, operational, and financial risks for both aviation lessors and financiers.

Asset-led, intelligence-driven placement approach

Marsh Risk is positioned to help lessors navigate the current landscape, offering tailored solutions that align with each lessor’s individualized risk profile. Our approach centers on:

  • Assessing risk tolerance to create tailored risk transfer strategies.
  • Advanced data analytics and risk registers to provide real-time insights into market conditions, asset risk profiles, and claims trends.
  • Dedicated placement solutions, such as our lease/finance facility, designed to meet diverse lessor profiles and evolving risks.
  • An understanding of insurance requirements and risk allocation in leases and contracts.
  • Situational awareness and scenario planning to assess geopolitical risks and help to guide responses — enabling lessors to act swiftly and cost-effectively amid sudden market shifts.

A continuing partnership

The Russia-Ukraine conflict was a stark stress test for the aviation leasing insurance market, exposing where existing risk management frameworks can improve.

Marsh Risk listens to our clients’ evolving needs to deliver innovative insurance and risk management solutions tailored to them. We do this by bringing strategic risk advisory, advanced data intelligence, and deep industry relationships, Marsh offers a strong, differentiated partnership for today and beyond.

The political risk landscape remains volatile, with war risk coverage challenged by significant claims and ongoing conflicts. Recent developments in the Middle East have heightened market and legal uncertainties. Marsh continues to monitor these dynamics closely to support clients navigating this uncertain environment.

​​​​​​​​​​​​​​​​To learn more about our lessor risk management strategies and solutions, contact your Marsh advisor and attend our upcoming Aviation conference.

Together we will navigate tomorrow’s aviation challenges

Dates: April 13-15, 2026

Venue: Park Hyatt London River Thames

Location: London, England

Register your interest to attend

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