Insuranceciooutlook

How Drones Take Insurance Operations to New Heights

By Insurance CIO Outlook | Wednesday, March 11, 2020

With drones, insurers can transform the way they do their business by assessing risk, processing claims, optimizing resource utilization, and preventing fraud. 

FREMONT, CA: The rapid growth of Unmanned Aerial Systems (UAS) or drones is enabling commercial players to tap them effectively. One of the major industries where drones are set to create a huge impact is insurance. An increasing number of insurers are using drones for enhancing their claims, underwriting, and risk assessment processes. Surely, drones can deliver substantial benefits insurance carriers across the value chain by enabling them to take the first step towards autonomous business. Some of the areas in insurance where drones play a major role are mentioned below. 

• Underwriting Performance

Drones can provide property data and exposure information that allows insurance carriers to manage and underwrite the risks more effectively and efficiently. It can assist in renewal inspections, endorsements, or special request situations by enabling the validation of critical underwriting attributes. Instead of depending on approximation techniques, insurance underwriters can use precise information from the drone camera and sensors.

• Risk Mitigation

Drones can help property and causality insurers to shift from protection to prevention-based business models. Autonomous drones will considerably lower the time, cost, and effort it takes for carrying out regular inspections on properties, especially in the event of natural disasters. 

• Claims Management

Conducting aerial inspections with drones can significantly improve accuracy and increase the productivity of adjusters. Drones can help improve costs and increase return on investment. They will also help carriers to access hard-to-reach locations for damage evaluation and aid in the faster settlement of claims. Drones can also handle numerous cases within a geographic area in a short time, and eliminate risks to field agents.

Sources say that by the end of 2020, about 30,000 drones will be used for business purposes. In order to gear up for the exciting journey ahead, insurers need to invest in the right capabilities, and tailor strategies to support them.

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