Allianz and Flock, a UK based InsurTech, are set to launch the first pay-as-you fly drone insurance later this year for the UK market. The coverage can be tailored to each flight through the Flock app at the touch of a button.
How it works?
To access flight data , Flock has partnered with local aviation and weather providers to aggregate real-time info on flight data, operator profiles, and hyper-local weather conditions.
Flock’s algorithm then utilises this data to quantify the risk involved on a flight by flight basis and Allianz provides the underwriting on the spot so that you can spend your time flying, and not worrying about insurance.
Flock’s differentiation is that it allows users to pay for drone insurance only when users need it. As real-time pricing is risk-dependent, the safer you fly, the less you pay.
Ultimately, as new use cases for commercial drone usage such as claims inspection, aerial security and goods delivery continue to emerge, it is fast becoming a multi-billion dollar industry. Additionally, with Allianz expecting the number of Unmanned Aircraft Systems (UAS) in the UK to triple and the market for commercial applications of UAS technology to reach $127 billion by 2020, drone insurance seems like a niche market that is worth entering early. And by partnering with Flock, a key innovator in thee space, Allianz are positioning themselves favourably.