Uzbek, Kazakh Air Cargo Boom Reshapes Aviation Insurance

Central Asia's Expanding Aviation Risk Profile

Central Asia's expanding air cargo and aviation sector is compelling insurers to re-evaluate risk profiles for regional airlines, according to Andrey Kavun, Managing Director of Malakut Insurance Brokers.

Speaking at the Central Asia Air Cargo Summit 2026 in Tashkent, Kavun noted that while growth presents opportunities, it also creates new risk exposures due to more aircraft, a greater number of international routes, and higher-value assets in operation.

Malakut Insurance Brokers, established in Dubai in 1999, specialises in complex risks, with aviation insurance as a core focus, covering hull and liability, war risk, and airport and ground-handler liability for various industry players. The company has more than 25 years of experience in aviation insurance and operates through a global network.

Rising Cargo Volumes in Uzbekistan and Kazakhstan

The scale of this expansion is evident in recent cargo volume data. Uzbekistan Airports reported that its facilities processed 98,137 tonnes of cargo and mail in 2025. Kazakhstan's Civil Aviation Administration indicated that airports in Kazakhstan handled 173,300 tonnes of cargo in 2025, an increase from 170,900 tonnes in 2024.

Malakut's presentation at the Tashkent summit further detailed these figures, noting Uzbekistan's 2025 volume represented a 12% year-on-year rise, while Kazakhstan's showed a 1.4% increase.

More recently, Uzbekistan's official statistics show air cargo volume surged to 255,000 tonnes in the first half of 2026, a significant jump from 103,300 tonnes in the first half of 2025, although the statistical methodology was adjusted from 2025.

Global Insurance Market Pressures and Geopolitical Factors

This regional expansion unfolds against a backdrop of a global aviation insurance market dealing with increasing losses. Andrey Kavun noted that while the market currently remains soft, indicating available capacity, pressure is mounting after a loss-making 2025 and ongoing geopolitical conflicts.

Malakut's presentation identified 2025 as an abnormal year for airline hull and liability losses, estimating them at approximately $3.2 billion. This aligns with Marsh's aviation insurance review, which stated that 2025 hull, spares, and liability losses heightened insurers' loss expectations.

Geopolitical factors, such as the recent Middle East conflict, further complicate risk assessments, leading to deeper underwriting scrutiny.

The International Air Transport Association (IATA) in June 2026 revised its global airline net profit forecast down to $23 billion from an earlier $41 billion estimate, partly due to a projected increase in the industry's fuel bill to $350 billion in 2026 from $252 billion in 2025, linked to energy shocks from the conflict.

Implications for Central Asian and Other Asian Operators

For Central Asian aviation operators, this evolving risk landscape means they must cultivate closer relationships with the insurance market, rather than engaging only when a renewal or new route is imminent, Kavun advised.

Airlines planning new routes through politically sensitive airspace are now required to provide comprehensive underwriting information for risk assessment, including details on fleet size and safety management systems.

Sanctions add another layer of complexity, as related insurance matters must undergo compliance procedures, potentially slowing operational decisions in a rapidly changing environment. The need for more flexible insurance models is anticipated as airlines operate in increasingly volatile geopolitical settings.

Asian carriers, particularly those with expanding networks into or through Central Asia or regions with elevated geopolitical risks, should similarly review their engagement with underwriters and ensure robust data provision to secure favourable terms.