Reinsurance News

Munich Re launches customised drone insurance cover

6th July 2017 - Author: Staff Writer

Munich Re America, a division of reinsurance giant Munich Re, has launched a new commercial drone insurance product offering a customised liability solution for small to medium-sized clients of insurers.

The new product comes in response to increased opportunities for drone use in the U.S. after Federal Aviation Agency (FAA) Rule 107 was issued in August last year – allowing any non-recreational operator who completes a certification process into U.S. airspace.

Tim Brockett, Senior Vice President, Reinsurance Division Strategic Products, Munich Re, U.S. commented; “New regulations have spurred the commercial use of drones across a broad spectrum of industries from photography and security to firefighting and law enforcement.

“But as companies and public entities find new, safe and cost-effective ways to use drone technology, most commercial insurance policies don’t cover or offer very limited liability protection for drones.

“Our Drone Liability Endorsement addresses an emerging market need and offers a customized insurance solution to help protect companies against potential liability as the result of using drones.”

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Munich Re’s U.S. Drone Liability Endorsement can be attached to an existing commercial general liability insurance policy purchased through a participating insurer who would handle claims.

The drone cover includes bodily injury and property damage liability and/or personal injury liability for drones that are under 55 pounds.

The new product targets small to medium-sized U.S. businesses and farm and agricultural operations, and can be customised based on insurers existing commercial lines policies and policyholders’ needs.

“Ease of use is also a key deliverable of this new offering,” Brockett continued. “Insurance carriers that offer the Drone Liability Endorsement to their commercial policyholders will have access to an Application Programing Interface (API) that will seamlessly verify that the drone and drone pilot have active and valid registrations with the FAA,” added Brockett.

The FAA predicts that by 2020 up to 2.7 million commercial drones could be in use, creating a new niche space for re/insurance market demand.

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