Now Drones Have Their Own Insurtech

drones insurtech

Our CEO and I had a rather spirited discussion last week as to why there was a story about drones on FintekNews, even though it was a rather cool one.  What, I wondered aloud more than once, do drones have to do with fintech?  Turns out, there is a connection, and whodda thunk?  But insurance behemoth Allianz has teamed with British insurtech Flock (which has a .org domain, btw, which to me denotes non-for-profit, interesting) to offer “pay as you fly” drone insurance.  The firm’s website states it will be launching later in 2017, but really, it’s quite a good idea and an interesting one.  And, much to the delight of our CEO, proves that drones and fintech really do have a connection.  I should never have doubted it.
(Cindy Taylor/Publisher)

“The first product will be a mobile app for pay-as-you-fly drone insurance.
Allianz Global Corporate & Specialty (AGCS) has teamed up with InsurTech start-up Flock to develop digital insurance solutions for the drone market.
The insurer stated that the partnership’s first product, a mobile app enabling operators to buy pay-as-you-fly drone insurance, would be launched in the UK later this year.

According to a report by AGCS the number of drones, or unmanned aircraft systems (UAS), is set to triple by 2020.

The insurer noted that the increasing number of drones also brings new risks, such as collision with aircraft, buildings and people.
It detailed that the new policy would deliver on-demand drone insurance through ha simple, easy to use app for commercial and recreational UAS users.

According to the insurer, Flock has partnered with world-leading data providers to aggregate real-time data relevant to drone flight risk such as drone data, operator profiles, environmental data, and hyperlocal weather conditions (accurate to within a few minutes and a few hundred meters).

This data is converted into a risk metric, and then an insurance premium for commercial or recreational drone flights.

It added that pilots will be fully insured for their flight time, within a specified geographical region – all of which is customizable at the point of sale, or can be scheduled in advance…”