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

  • January 24, 2012
    Underinvestment in infrastructure threatens economic growth
    The 2011 Urban Mobility Report from the Texas Transportation Institute highlights the dangers of continued underinvestment in transportation infrastructure but also offers some hope in terms of possible solutions
  • December 6, 2012
    Debating the future of in-vehicle systems
    Industry experts talk to Jason Barnes about the legislative situation of current and future in-vehicle systems. Articles about technology development can have a tendency to reference Moore’s Law with almost indecent regularity and haste but the fact remains that despite predictions of slow-down or plateauing, the pace remains unrelenting. That juxtaposes with a common tendency within the ITS industry: to concentrate on the technology and assume that much else – legislation, business cases and so on – will m
  • January 27, 2012
    Ramp metering delivers - again
    Though still controversial, ramp metering, which has been around for nearly 50 years, continues to deliver substantial benefits, and generally for relatively small cost. Kansas City is a case in point. In March 2010, Kansas City Scout, a partnership between the Missouri and Kansas Departments of Transportation to provide ITS for the greater Kansas City Area, activated the first ramp metering system in the region. The project is located on an 8.85km (5.5 mile) section of Interstate 435 from Metcalf Avenue to
  • January 25, 2018
    Manchester seeks smart but not selective transport solutions
    Smarter transport relies on better communications both with travellers and between transport providers. Andrew Williams reports. Inrix’s prediction that the cost of traffic congestion will rise by 63% to £21bn per year by 2030 clearly illustrates that, in addition to the ongoing inconvenience and inefficiency, ongoing gridlock is a significant drain on the economy. It is against this backdrop that a Cisco-led consortium has launched CitySpire, a smart transport programme that uses location-based services a