How Drones Contribute to Insurance Risk Management

By Insurance CIO Outlook | Tuesday, July 07, 2020

 The applications of drones are enabling insurers to improve their risk assessment capabilities. 

 FREMONT, CA: Technological transformations are impacting the industries throughout. The emergence of new technologies is also giving way to new industry use cases. For instance, the proliferation of unmanned aerial vehicles (UAVs) or drones is significantly enhancing the capabilities of industries such as healthcare and insurance. Various insurance firms have already deployed drones for the purposes of risk management to reduce operational costs. 

Insurance firms are finding drones, especially useful while processing claims and evaluating risks on-site. Furthermore, the use of drones is enabling firms to develop insurance coverage better. Drones can offer increased visibility to insurers in various cases. For instance, in case of an accident or a natural disaster, it might get difficult for the insurers to reach the scene and document the incident promptly safely. Alternatively, insurance firms can rely on drones for the above cause. 

UAVs laced with Hi-tech cameras, and video equipment allows the operator to fly the device into areas that may be difficult to reach or unsafe for humans. Such UAVs can also document the scene in detail, providing the insurance firms the evidence needed to process insurance claims. Thus, insurers can safeguard themselves against any possible fraudulent claims due to enhanced visibility into the accident zone.

Insurance firms are also using drones to evaluate sites with the purpose of identifying and preventing risks. UAVs are being used by the insurers to survey scenes and sites so that accurate risk projection associated with a building or a business can be made. Based on the results of the evaluation, insurance firms can develop a comprehensive picture of the site along with the risk prevention measures. Similarly, insurance firms are also using drones to survey severely toxic, damaged, and inaccessible industry sites for the claims process.

The above applications of drones are certainly enhancing the risk assessment capability of the insurance firms. Further proliferation of drones will enable cost-cutting and increase competition among insurance firms.

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