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Geovation start-up partners with insurance giant

By [email protected] - 3rd August 2017 - 12:12

Allianz partners with InsurTech Flock to Deliver Safety and Insurance Solutions for drones
  • Partnership will utilize Big-Data to provide owners and pilots with real-time information to reduce risk and improve flight safety
  • Allianz and Flock working together to deliver the UK’s first on-demand drone insurance through a simple, easy-to-use app for commercial and recreational users
  • App will instantly provide pay-as-you-fly liability insurance tailored to each flight and for commercial users, will also include equipment insurance

London - July 2017: Allianz Global Corporate & Specialty SE (AGCS), the corporate insurance carrier of Allianz SE, is working with InsurTech company Flock to develop digital insurance solutions for the growing drones or unmanned aircraft systems (UAS) market. The partnership’s first product, to be launched later this year, is a mobile app (for Android and iOS devises) enabling operators to purchase ‘pay-as-you-fly’ drone insurance at the touch of a button covering both liability (up to £10M) and equipment cover.

Use of drones in public airspace increasing dramatically
The drone industry is fast becoming a multi-billion dollar business, as the number of recreational users grows and the benefits businesses can gain from utilizing such innovative technology become apparent. The number of UAS is set to triple by 2020.[1] Globally, UAS market volume is forecast to reach 4.7 million[2] units by 2020 (other estimates are even higher), with the market for commercial application of UAS technology estimated to soar from $2bn to $127bn[3]. Such projections are driven by UAS becoming cheaper, smaller and easier to use, as well as regulatory progress. $1bn is the potential value of the commercial drone insurance market by 2020[4]. However, the increasing number of drones in the skies also brings new risks, such as collision. The number of near-misses with aircraft is a growing concern, resulting in the UK government’s announcement that drones of a certain size will need be registered and users take a safety test in future. Drone insurance also has a vital role to play in protecting operators and the public from such risks.

Allianz and Flock to launch UK’s first pay-as-you-fly drone insurance
Allianz is working with Flock to deliver on-demand drone insurance through a simple, easy-to-use app for commercial and recreational drone users. Flock has partnered with some of the world leading data providers to aggregate data relevant to drone flight risk, such as drone data, operator profiles, environmental data, and hyperlocal weather conditions (accurate to within a few minutes and a few hundred meters). Algorithms convert this real-time geospatial data into a risk metric and then a premium for drone flights. The App will also provide drone owners and pilots with a comprehensive safety tool, alerting them to ground hazards, real-time weather updates, A Notice to Airmen (NOTAMS), restricted airspace and nearby aviation activity.

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. According to our recent report, Rise of the Drones - Managing the Unique Risks Associated with Unmanned Aircraft Systems, as drone usage increases, new risk exposures will emerge including the risk of cyber-attacks and terrorism. Increased 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.” Kirwan continued,

Tom Chamberlain, Underwriting Manager for Aerospace and General Aviation, AGCS added “Allianz is at the forefront of insuring the rapidly expanding UAS industry and we’re excited to partner with Flock to explore Big-Data driven risk intelligence solutions directly addressing the safety and insurance needs of both commercial and recreational users. This 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.”

Ed Leon Klinger, CEO, Flock said, “Allianz are a world leading authority in the aviation space; with their expertise, and Flock’s cutting edge technology, this partnership has the potential to significantly redefine the approach to drone risk mitigation and insurance. The drone industry is changing the way we look at agriculture, industrial inspections, photography, and more. Flock’s partnership with Allianz, starting with the launch of the on-demand drone insurance app later this year, will provide drone pilots with a comprehensive safety tool, alerting them to ground hazards, real-time weather updates, NOTAMS, restricted airspace and nearby aviation activity - all packaged in an app, as easy to use as ordering an Uber.”

Allianz recently published the report ‚Rise of the Drones - Managing the Unique Risks Associated with Unmanned Aircraft Systems‘ – examining the key issues and trends underpinning rapid growth in usage of UAS and provides insight into the potential risk exposures related to their deployment in the private, public and commercial realms.

Read More: Satellite Positioning, Navigation & Timing (PNT) Cartography Autonomous Underwater Vehicle Unmanned Aerial Vehicles Education & Research Insurance

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