Allianz and InsurTech start-up Flock have announced the soon to come launch of the UK’s first pay-as-you fly drone insurance that can be tailored to each flight through the Flock app and provides up to £10 million liability cover.
The pay-as-you-fly drone insurance is the first product to be launched by Allianz SE and their InsurTech startup partner Flock and caters to the growing niche market of drone use in public airspace.
Tom Chamberlain, Underwriting Manager for Aerospace and General Aviation, AGCS said the partnership “further aligns with Allianz’s digital strategy to focus on new distribution channels for our products and provide enhanced customer journeys in a technologically and digitally changing landscape.”
The drone cover offers full insurance for flight time within the specified geographical region and includes equipment insurance for commercial users.
The Flock app also helps customers reduce their risks by including access to a comprehensive safety tool that draws on Flock’s big data to alert drone pilots to potential hazards.
Ed Leon Klinger, Flock’s CEO, commented; “Increasing drone use will bring complex risks. Flock uses cutting edge data analytics to identify and quantify these risks and together with Allianz, you’re now able to insure against them. Our app puts control back into the hands of the pilot, allowing them to purchase insurance exactly when they need it and fully customized to the needs of their job.”
To provide the data on flight safety, Flock partnered with data providers to aggregate real-time information on drone data, operator profiles, environmental data, and hyperlocal weather conditions.
The app then uses an algorithm to convert the data into a risk metric for premiums that can be tailor-made to each flight.
Brian Kirwan, UK CEO, AGCS said: “Twenty-two incidents involving commercial airliners and possible drones were investigated by the Civil Aviation Authority’s Airprox Board in the first four months of this year alone.
“As drone usage increases, new risk exposures will emerge including the risk of cyber-attacks and terrorism. Further incidents are also likely to occur once regulations are finalized that strike a balance between reaping the benefits of drones and minimizing misuse.
“Future incidents could result in multi-million pound claims against businesses, operators and manufacturers.”
Allianz estimates the number of Unmanned Aircraft Systems (UAS) will triple by 2020, and the market for commercial application of UAS technology is estimated to skyrocket from $2 billion to $127 billion; making drone insurance a growing niche space for insurance, with potential for the global commercial drone insurance market to grow to $1 billion by 2020.