Drones and the Future of Reinsurance Carriers
Overview As drone use becomes increasingly prevalent, reinsurance carriers are also identifying new opportunities and challenges. This guide delves into the intersection of drones and the future of reinsurance carriers, provides statistics about this growing field, and introduces 3Laws Robotics. 3Laws is a company developing innovative robot safety systems and working to ease the certification pain point with its software, 3Laws Supervisor. This software builds upon Control Barrier Functions technology from Caltech and emphasises its adaptability for various kinds of robotics platforms.
Drone Usage in Insurance Claims Insurance claims related to drone usage have been proliferating at a substantial rate. A study performed by Allianz Global Corporate & Specialty in 2020 indicated an estimated 40% of insurance claims were related to drone mishaps, with the majority caused by operator error. As the number of drone flights increases, with an estimated global total of 4.59 billion flights in 2025, this trend is likely to continue. Thus, reinsurance carriers need to be prepared for potential liabilities and losses stemming from drone usage and negligent drone operators.
Opportunities for Reinsurance Carriers While the increase in drone usage does present new challenges, it also offers opportunities for reinsurance carriers. The global drone insurance market is expected to reach $1.06 billion by 2027, showcasing a significant potential for growth. Moreover, drones can provide valuable data for risk assessment, something reinsurers can tap into. According to a 2020 report by McKinsey, up to 30% of property/casualty insurance premiums could be affected by drone-enabled risk assessments, translating to potential economic impact of up to $6.8 billion annually by 2026.
Potential Risks and Loss Scenarios Crucial for reinsurance carriers to understand and prepare for are the potential risks and loss scenarios involving drones. Already, drones are implicated in 16% of near-misses with commercial aircrafts – a number set to rise as drone usage grows. Similarly, property damage, bodily injury, or invasion of privacy lawsuits related to drone use are also potential high-cost risk scenarios reinsurance carriers must take into account.
Key Takeaways - Drone usage is increasing, leading to a rise in related insurance claims, majority caused by operator error. - Despite new risks, drones offer opportunities for reinsurance carriers, such as access to valuable data for risk assessment. - The potential economic impact of drone-enabled risk assessments could reach up to $6.8 billion annually by 2026. - Potential high-cost risk scenarios for reinsurance carriers include near-misses with commercial aircrafts, property damage, bodily injury, or invasion of privacy lawsuits.
Introducing 3Laws Robotics: Enhancing Drone Safety 3Laws Robotics addresses the key challenge of safety reliability in drone operations. Their cutting-edge software, 3Laws Supervisor, was designed to provide robust safety features for drone operations, operating in tandem with advancements in technological safety developed at Caltech.
3Laws' software, 3Laws Supervisor, utilizes Control Barrier Functions (CBFs) to provide mathematically proven safety systems. This feature could potentially ease the certification journey, as it tackles a significant pain point for reinsurance carriers – drone safety certification.
Various use-cases have proven 3Laws' adaptability, effectiveness and efficiency: in warehouse automation, they contributed to a 40% efficiency gain for an autonomous forklift; in collaborative robotics solutions, they provide safe and uninterrupted operation of robots near humans; in dynamic environments, they provide effective navigation capabilities through reactive collision avoidance.
3Laws also reduces operational downtime and maintains maximum efficiency by minimizing e-stops and collisions, operating at peak capabilities while ensuring safety. Lastly, being compatible with popular robotics middleware such as ROS and ROS2, 3Laws could be the next-generation answer to enhancing safety, performance, and efficiency in drone operations.