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

  • Multiple vehicle crashes could soon be a thing of the past, say experts
    September 25, 2013
    Experts at Thatcham Research - the UK motor insurers’ automotive research facility, believe that multiple vehicle accidents could be mitigated or avoided altogether with the widespread use of new automatic braking technologies. Thatcham has been researching and testing autonomous emergency braking (AEB) systems on behalf of insurers for the last three years and has already undertaken an in-depth study of crashes and their causation factors.
  • Volocopter pilots air taxi at Helsinki
    September 5, 2019
    Volocopter has trialled an air taxi at the Helsinki International Airport in Finland, integrating into the air traffic management (ATM) and unmanned aircraft traffic management (UTM) system. Within the Single European Sky ATM Research (SESAR) Programme, this demonstration is the final part of the Gulf of Finland (GOF) U-Space project showing how ATM and UTM systems enable urban air mobility (UAM). Maria Tamm, project coordinator from Estonian Air Navigation Services, says rules for using very low-level ai
  • RAI Amsterdam investigates drone hub corridor
    July 1, 2019
    RAI Amsterdam is to explore the feasibility of a drone hub corridor, a place where electrically-powered unmanned air vehicles can take off and land. The initiative is part of the Urban Air Mobility Demonstrator project, which seeks to explore how drones can contribute to a sustainable, safer and more accessible city. RAI Amsterdam will work with the municipality of Amsterdam and Dutch stadium Johan Cruijff Arena to investigate how this might work. Paul Riemens, CEO at RAI Amsterdam, says the partn
  • Polarisation is glaringly obvious, says Sony
    December 3, 2018
    Glare from the sun is a factor in a large number of road accidents – many of them fatal. But there is a solution at hand: using polarisation can mitigate the effect of glare and improve ITS camera enforcement, explains Stephane Clauss The effect of glare on driver safety has been well documented. A 2013 UK study by the country’s largest driver organisation, the AA, calculated sun glare was a contributing cause in almost 3,000 road accidents in 2012 alone. This represented one in 33 accidents on Britain’s