Artificial Intelligence in US aviation insurance: Balancing opportunity and risk

Artificial Intelligence (AI) usage is becoming increasingly prevalent in the aviation insurance market. Following ITIC’s recent attendance at the Aviation Insurance Association (AIA) conference in Dallas, it was clear that AI is no longer just a fringe topic, instead now featuring in presentations and wider discussions throughout the event. In many ways, AI appears to have the potential to challenge the role of private equity in aviation as being a predominant talking point in conversations at aviation events, and it certainly appears to have replaced sustainable aviation fuel as the main topic of conversation at European aviation events.

Thanks to its ability to process a large amount of data in a short timescale, AI is already being used by some insurers to support underwriting and claims handling processes, and to assist with fraud detection, documentation review and trend identification. With the right amount of critical judgement by the user, it can support faster and more reliable decision-making, increasing efficiency. Aviation professionals insured by ITIC may also benefit from these efficiencies; however, in a sector where safety, regulation and professional judgement are paramount, its use and integration into daily processes must be handled with care.

Train the team assistant

AI can assist insurers with the review of large and varied information received each day, ranging from proposal forms, claims history and contracts, to aircraft operational information and publicly available regulatory data. This can help underwriters compare similar risks and flag information requiring human review. Claims teams may also benefit from the use of AI when summarising documents, identifying inconsistencies, organising evidence, and even recognising trends of serial litigants. The advantages are practical, and in a competitive US market these efficiencies are significant.

However, the need for caution and critical evaluation of AI-generated data has never been greater. AI is only as reliable as the data and instructions that underpin it. If a system is trained on incomplete, inaccurate, or biased information, it will inevitably produce flawed results.

You are the expert

An overreliance on AI may reduce an insurer’s ability to explain and justify decisions on underwriting and claims outcomes. This is particularly relevant in the regulated US environment, where regulators are increasingly focused on fairness, accountability, transparency, and consumer protection.

For a typical ITIC aviation assured, AI may be utilised in a wide range of day-to-day operations. For example, an air charter broker might use AI to draft client correspondence or summarise trip requirements. An aircraft manager could leverage AI to organise maintenance documentation, while a sales and acquisition broker might apply it when reviewing transaction materials. Consultants and surveyors may also draw on AI to support report preparation and refine wording.

These benefits can be highly tempting however, the professional liability risk should not be overlooked. AI-generated content may be inaccurate or misleading. If an aviation professional relies on unchecked output, there is a risk of subsequently giving incorrect advice, misstating a contractual obligation, overlooking a regulatory requirement or disclosing confidential client information.

Careful consideration

The sensible approach is not to avoid AI entirely and risk being left behind, but to use it with discipline. Insurers and ITIC assureds alike should maintain governance and human oversight, treating AI as an assistant instead of an expert. Outputs should be checked and final responsibility should remain with the professional using the tool.

AI isn’t going anywhere anytime soon and is likely to become a permanent feature of US aviation insurance and the businesses it supports. Its value will depend on whether it is improving judgement, rather than replacing it. Used carefully, it can support better service, clearer analysis and greater productivity. Used carelessly, it may create entirely new professional risks of its own.