Insurance in the age of drones
28 Oct 2016
Drone technology is still in its infancy, but it is developing fast.
Drones can range from large fixed wing craft capable of taking heavy payloads to insect-sized cameras taking images in the most confined of spaces. Drones can get quickly and easily to places that humans cannot. Their potential utility and cost savings are huge.
No new technology, especially one with a bulky physical presence capable of causing significant damage, can be operated without insurance. Insurers cannot fall back on established data sets. They can only succeed by working closely with the industry to ensure sufficient and applicable risk coverage is in place.
For many industries drones have a significant advantage in terms of precision, convenience, and cost over more traditional solutions such as people, planes or helicopters. The insurance industry will likely play a critical role in the growth of this exciting new industry.
No technology develops in a vacuum – and no almost all technology develops faster than the regulations governing it. Nonetheless, US authorities are doing their best to keep up with drones, developing an approach to a fully integrated airspace and the creation of highways in the sky. Drone regulation is being drafted in an environment that remains pro-innovation, going all the way up to the White House.
Watch the interview with Lisa Ellman:
Drones have the potential to do great good in society. Equally, in the wrong hands, they have significant potential to cause harm. Drones have already been used in illegal surveillance, both at an individual and an industrial level. They can be used in smuggling, and there have already been several cases to drugs being shipped into jails. They can be used in direct physical attacks, they can be used to intercept wireless signals and hack. There is a burgeoning industry developing in physically stopping rogue drones, from using birds of prey to flying nets.
Watch the interview with Samy Kamkar: