Insuranceciooutlook

How can Insurers Avert Drone Risks?

By Insurance CIO Outlook | Tuesday, January 07, 2020

The insurance industry is faced with an evolving set of risks involving commercial and recreational usage of drones in vulnerable and restricted zones.

FREMONT, CA: The current obsession with drone technology has resulted in an increased number of unmanned aerial vehicles. There have been some cases where drones have created trouble and endangered the lives of many. Not all of the drone applications are safe. For the insurance industry, especially, drones have become a sore point. Residential areas, no-flying zones, as well as critical areas surrounding busy commercial airports, are now vulnerable to drone-related accidents. Ultimately, this impacts the risk profile of every insurance provider. This has made it essential for insurance companies to come up with innovative ways of averting drone-related accidents. Developing the right technological barriers and a set of strategies can be instrumental in helping the insurance sector thwart the looming threat of drones.

Developing Better Aviation Insurance Products

The insurance industry offers a range of products to the aviation industry. The growing clout of drones has a lot of impact on aviation-related operations. Carelessly operated or out-of-control drones on air-strips can be potentially hazardous for commercial flights during take-off and landing. Besides, drone-related disruptions could halt operations in busy airports leading to a lot of losses. Insurers are now trying to deploy technology to prevent the drone-risk from assuming a larger proportion. Anti-drone technology that helps detect and avert drones need to be adopted at the earliest.

Promoting the Regulation of Drones

Unauthorized drones are the biggest point of bother for the insurance sector at the moment. Random drones can often be spotted in overcrowded areas during public events. These drones pose a threat to the crown underneath. One can often spot drones at sporting events and music festivals. Unless these drones are legally regulated, the risk factor for insurance providers grows manifold. Thus, insurance companies should have clear-cut policies regarding coverage against drone-related damages and promote the regulation of drones.

Apart from the accidental nature of risks, drones have also been deployed in intended attacks. Drone technology is powerful enough to affect the public property and a large section of the population. Thus, insurance providers should actively pursue the development of technological barriers and automated threat detection systems that can bring down the incidence of accidents.

Weekly Brief

Read Also