Allianz and Flock to launch UK’s first pay-as-you-fly drone insurance
Posted on: 07 February 2018
Allianz Global Corporate & Specialty SE (AGCS), our corporate insurance carrier, has worked with InsurTech start-up Flock to develop digital insurance solutions for the growing drone or ‘Unmanned Aircraft Systems’ (UAS) market. The partnership’s first product, just launched, is an app (for Android and iOS devices) that lets operators purchase ‘pay-as-you-fly’ drone insurance at the touch of a button.
Flock has partnered with world-leading data providers to aggregate real-time data relevant to drone flight risk, like drone data, operator profiles, environmental data, and hyperlocal weather conditions. Flock combines real-time location based data (such as nearby schools, airports, NOTAMS (a notice to airmen), and more), as well as pilot information and drone details, to intelligently price insurance premiums for commercial and recreational pilots. Insuring a drone while it’s flying is an increasingly pressing concern because drone numbers continue to soar, which could lead to more accidents.
Drone numbers in public airspace is increasing
According to the AGCS report Rise of the Drones - Managing the Unique Risks Associated with Unmanned Aircraft Systems, drones are fast becoming a multi-billion dollar industry. The number of UAS is set to triple by 20201. Globally, the market for commercial application of UAS technology is estimated to soar from $2bn to $127bn2 in that time. Such projections are driven by drones becoming cheaper, smaller and easier to use, as well as regulatory progress around the globe.
However, the increasing number of drones in the skies also brings new risks, like collision with aircraft, buildings and people. The number of near-misses with aircraft is a growing concern. This has resulted in the government announcing that drones of a certain size need to be registered and that users take a safety test in future. Drone insurance has a vital role to play in protecting operators and the public from such risks.
This is another exciting development as the world adapts to the increased popularity of drones.
We are beyond proud to be working so closely with Allianz to launch a first of its kind product, combining risk intelligence with insurance to serve the rapidly growing drone industry. Flock's unique real-time risk engine uses big data to quantify the risk of any drone flight, allowing Allianz to instantly underwrite insurance policies.
- Ed Klinger, Flock CEO
We are excited to be working with Flock to be able to break away from the traditional annual policy and offer a unique product to customers which suits their needs as drone pilots. Only paying for insurance when it’s needed and being able to tailor the cover to each flight has been very positively received by the drone community.
- Tony Avery, Underwriter for General Aviation and Aerospace, AGCS London
We are very proud at Allianz to be a the cutting edge of real time insurance. We no longer need to make assumptions at the start of the year on how a customer is behaving, we can use big data assess the risk on the spot at any time or place cover is needed. This is the future of insurance.