Reinsurance News

COVID-19 to increase drone use within insurance: GlobalData

22nd May 2020 - Author: Charlie Wood

Data and analytics specialist GlobalData is expecting drones to play a bigger role within the insurance space as coronavirus continues to change the way people and businesses interact.

droneWhile it was anticipated that drone technology would eventually take off in the inspection of large areas, GlobalData notes how coronavirus is highlighting more than ever the benefits that the technology can bring to the industry.

35% of firms in the insurance industry cited to be investing in drone technology, according to a survey conducted by the firm.

However, a larger 68% proportion expect the technology to have a disruptive influence on the sector.

“Drones are particularly useful for inspecting large-scale and difficult-to-reach infrastructure as well as vast areas of land,” said Beatriz Benito, Senior Insurance Analyst at GlobalData.

“The value proposition of drones had centered on the speed and safety they offer in loss adjustments, which ultimately resulted in operational efficiencies and cost savings.”

Physical assessments are much less viable in the era of COVID-19, social distancing and quarantine measures.

Keeping human contact to a minimum has not only become important, but sometimes strictly necessary, making walking through a damaged property with a policyholder no longer feasible.

Furthermore, GlobalData expects drone technology to become more widespread in insurance as the potential of increased natural disasters hit different geographies.

Benito concludes: “At a time when many insurers have been badly hit by the pandemic, technology that has the potential to bring operational savings is likely to lure the industry.

“On the other hand, customers will benefit from quicker claims processing and faster payouts.”

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