Skip to main content

Growth in commercial drones to bring multiple benefits but also new risks

A new report from aviation insurer Allianz Global Corporate & Specialty (AGCS), Rise of the Drones: Managing the Unique Risks Associated with Unmanned Aircraft Systems, indicates that numbers of unmanned aircraft systems (UAS) to surge as they become smaller and cheaper. Whether used commercially for industrial inspections, aerial photography, border patrol, emergency deliveries and crop surveys or recreationally by millions, drones or unmanned aircraft systems (UAS) have the potential to become a multi-
September 20, 2016 Read time: 3 mins
A new report from aviation insurer Allianz Global Corporate & Specialty (AGCS), Rise of the Drones: Managing the Unique Risks Associated with Unmanned Aircraft Systems, indicates that numbers of unmanned aircraft systems (UAS) to surge as they become smaller and cheaper.

Whether used commercially for industrial inspections, aerial photography, border patrol, emergency deliveries and crop surveys or recreationally by millions, drones or unmanned aircraft systems (UAS) have the potential to become a multi-billion dollar business and deliver problem-solving technologies across numerous industries. However, more drones in the skies also raise a number of new safety concerns, ranging from collisions and crashes to cyber-attacks and terrorism.

The report says systematic registration of unmanned aircraft and robust education and training of operators is necessary to ensure safe UAS operations.

“There have already been enough incidents and near-misses to date involving UAS to generate concern that the likelihood of collisions and other loss events will grow as numbers multiply,” says James Van Meter, an Aviation practice leader at AGCS.

As drones are becoming smaller, cheaper and easier to use – and regulatory change, particularly in the US, lowers barriers to entry - growth prospects are surging: The US Federal Aviation Administration (FAA) forecasts that by the end of 2016 in the US over 600,000 UAS will be deployed for commercial use alone – three times the number of registered manned aircraft. In addition, 1.9 million UAS are expected to be in recreational use.

AGCS believes that UAS in commercial use will increase greatly in the next decade because they are effective at carrying out menial or dangerous tasks and have the potential to both solve problems and save costs in future across a number of other industries, throughout the developing world and in disaster relief situations.

A primary concern is the lack of consistent standards or regulations for the safe operation of UAS around the globe. According to van Meter, in many locations, there are few or no pilot training and maintenance standards. “In addition to regulation, education will continue to be key to ensuring safe UAS operation,” he says. Training has a crucial role to play in reducing the risk of an incident occurring, with novice control a major cause of loss activity.

In many locations around the world registration of UAS is not mandatory, effectively affording the user anonymity in the event of a loss incident. AGCS believes identification of both UAS and operator, along with proper insurance, will be essential in the future to maintain proper liability.

Related Content

  • February 3, 2012
    Embedded connectivity delivers real time travel information
    Ton Brand describes the GSM Association's Embedded mTelematics programme. As the world's roads become increasingly crowded, consumers and businesses are demanding better real-time information to help them both avoid traffic congestion and make smarter use of public transport. Embedding mobile connectivity directly into vehicles can enable drivers and passengers to see live traffic flows in their localities, as well as the expected arrival time of the next bus, ferry or tram
  • November 13, 2012
    Standardised technology aids low cost wireless communication
    In the UK, the necessary radio spectrum has been identified and standardised technology developed to allow cost effective wireless communication between cars, devices and other ‘machines’. This by Professor William Webb. A world free of traffic congestion, with intelligent systems directing vehicles and alerting drivers to free parking spaces may sound a far off fantasy to motorists stuck in seemingly endless queues on the outskirts of London. Yet this is a scenario not confined to the world of science fict
  • June 11, 2015
    Bigger role for data protection and privacy policies in transportation
    Dr Caitlin Cottrill, lecturer at the University of Aberdeen’s School of Geosciences, examines the impact of privacy legislation on the transportation sector. Growing reliance on big data, underscored by the increasing ubiquity of smart infrastructure and the ‘Internet of Things’, has profoundly impacted the regulatory environment experienced by transportation professionals. This is particularly the case in relation to the privacy of personally identifying information (PII). There has been increased attenti
  • July 18, 2012
    Priority for safety and interoperability, need for DSRC
    Justin McNew, Chief Technology Officer, Kapsch TrafficCom Inc., USA offers his opinion of where 5.9GHz DSRC technology will head in the coming years. The debate ranges back and forth over the most suitable technological solution for future tolling and charging in the US. However, the coming trend is common cooperative infrastructure: instrumented roads and vehicles with the capacity to communicate with each other over all manner of safety, mobility and traveller applications, many of which will involve fina