Compared to the traditional aircraft, electrification of power system in aircraft has potential to revolutionise the aviation industry. Typically, more-electric aircraft (MEA), even all-electric aircraft has been developed and delivered to decrease the greenhouse gas emission and increase the energy efficiency. The next generation of MEA will operate at high voltage to facilitate the transfer of significant levels of electrical power in an electrified aircraft. However, the higher voltage inevitably leads to an increased risk to the insulation of the electrical components and power system. This study aims to provide a critical overview of the insulation challenges from the perspective of electrified aircraft, typically MEA application. The development of MEA and the special working conditions are explained at the beginning. Then the insulation challenges of power modules, electric machines, aeronautical cables etc. are discussed in detail. Finally, the existing technical barriers and future prospects of insulation for electrified aircraft are summarised. It provides a reference for the future design and test in power system of next generation MEA and related electrified air transportations.