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

  • Spain may use drones for traffic monitoring
    November 10, 2015
    Spain’s highway agency and technology company Sistemas y Montajes Industriales are developing unmanned drones to monitor traffic on public highways and may have drones ready to come into operation from next year, according to Euroweekly News. Alberto de Laorden, the director of Sistems, was at the Seventh National Road Safety Congress in Valencia and confirmed that the prototype is on course to be ready by next year. Laorden spoke about the advantages of the aircraft at the Congress, “Much cheaper tha
  • Researchers use drones to assess infrastructure damage
    March 6, 2015
    Researchers at the University of New Mexico, along with collaborators at San Diego State University and BAE Systems, are utilising drone technology to develop an operational prototype to assess infrastructure damage. The drone will use innovative remote sensing approaches and cameras mounted on low cost aircraft or unmanned drones to detect and map fine scale transportation infrastructure damage such as cracks, deformations and shifts immediately following natural disasters such as earthquakes, floods and h
  • UK government launch drone standards to improve public confidence
    March 6, 2018
    UK drone standards are set to be introduced by the government in Spring 2018 to help strengthen public confidence in the technology’s safety, security and compliance, following an announcement at the House of Lords. These regulations aim to realise the industry's potential and its effect on business sectors such as transport and infrastructure. The conference highlighted the possibilities that drones will bring to freight and passenger transport, which it claimed will reduce the need for expensive infras
  • How can your business plan for the worst?
    May 12, 2022
    Covid and extreme weather events have recently shown that disruption to our lives and daily routines can come suddenly, and on a staggering scale. Roger Leyland of ISN Solutions outlines what can be done to ensure continuity for agencies and businesses