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

  • Motor insurance for autonomous vehicles ‘will shift from drivers to OEMs’
    October 19, 2015
    Autonomous vehicles are likely to increase insurance claims related to product parameters rather than driver liability New analysis from Frost & Sullivan, Impact of Automated Vehicles on Motor Insurance Market, finds that motor insurers will move away from the driver-centric strategy to follow one or a combination of three models as automated vehicles become common: product-centric evaluation; brand-centric evaluation; system-centric evaluation.
  • Artificial Intelligence applications for commercial vehicle operations
    December 28, 2021
    The combination of machine learning, deep neural networks and computer vision provides opportunities to address in new ways an increasing range of functions that are a part of commercial vehicle operations. Here, IRD’s Rish Malhotra details how.
  • Report analyses multiple ITS projects to highlight cost and benefits
    March 16, 2015
    Every year in America cost benefit analysis is carried out on dozens of ITS installations and pilot studies and the findings, along with the lessons learned, are entered into the Department of Transportation’s (USDOT’s) web-based ITS Knowledge Resources database. This database holds more than 1,600 reports and periodically the USDOT reviews the material on file to draw conclusions from this wider body of evidence. It has just published one such review ITS Benefits, Costs, and Lessons Learned: 2014 Update Re
  • GHSA wants more action on distracted driving 
    May 5, 2021
    Some US state laws have not kept pace with tech, says lobby group StopDistractions.org