Allianz Startup Partner to Offer On-Demand Drone Insurance

Allianz insurtech partner Flock will launch on-demand drone insurance in the UK market through a mobile app for commercial and recreational users, according to the Insurance Journal.

The “Flock Cover” app – will instantly provide pay-as-you-fly liability insurance up to $13.1 million, tailored to each flight, including equipment insurance for commercial users, said AGCS, Allianz’ corporate insurance carrier.

“Pilots will be fully insured for their flight time, within a specified geographical region – all of which is customizable at the point of sale, or can be scheduled in advance,” AGCS said in a statement.

The “Flock Cover” app leverages big data to provide drone pilots with real-time information, such as ground hazards, weather updates and restricted airspace – all designed to reduce risk and improve flight safety, said AGCS.

Although the product won’t be available for several months, Flock has provided early access to beta-testers, with signup available through its website.

Flock and Allianz said they will be announcing more products for the “unmanned aircraft systems” (UAS) market in the coming months.

“Twenty-two incidents involving commercial airliners and possible drones were investigated by the [UK] Civil Aviation Authority’s Airprox Board in the first four months of this year alone,” Brian Kirwan, UK CEO, AGCS, told the Insurance Journal.

“As drone usage increases, new risk exposures will emerge including the risk of cyber attacks and terrorism,” he added. “Future incidents could result in multi-million pound claims against businesses, operators and manufacturers.”

Drone insurance has a vital role to play in protecting operators and the public from such risks, said the AGCS in its statement.

“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,” Tom Chamberlain, underwriting manager for Aerospace and General Aviation, AGCS, told Insurance Journal.

Drones are fast becoming a multi-billion dollar industry, as the number of recreational users grows and the benefits businesses can gain from utilizing such innovative technology becomes apparent, said AGCS, which quoted its report titled, “Rise of the Drones – Managing the Unique Risks Associated with Unmanned Aircraft Systems.” (The report can be downloaded from the company’s website).

Posted in