Allianz and Flock to launch UK’s first pay-as-you-fly drone insurance

Allianz and Flock to launch UK’s first pay-as-you-fly drone insurance

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insurance solutions for UAS
AGCS is working with InsurTech company Flock to develop digital insurance solutions for UAS.

UK: 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.

Their first product, which is expected to be launched later this year (a mobile app for Android and iOS devices) will enable operators to purchase ‘pay-as-you-fly’ drone insurance covering both liability (up to £10M) and equipment cover.

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.