InsurTech

Random Thoughts: Drones

Share this post:

A short one today – still working on the new study (see the sneak peeks here and here):

  • It seems that quite a few insurers are now thinking of using drones for their business, judging by FAA approvals: State Farm, AIG, USAA and Erie, just to name a few that were in the news recently.
  • What are the use cases? The most obvious is damage inspection (and Lynn Kesterson-Townes had a nice post on that a while back). But I can see just as good a use in underwriting. Imagine your commercial underwriter visiting a plant or warehouse, wearing with an augmented reality visor and bringing along 1-2 small camera-equipped drones. One walk- and fly-through, and you’ve got all the risk hotspots covered, plus you’d be able to identify lots of potential ones, especially if you have a Watson system in the background. Risk mitigation at its best; and you can even start offering it to home-owners etc. as a service. The best insurance is one that’s never needed, after all…
  • The FAA estimates that more than 30,000 commercial drones will be in the sky in the next ten years. They need insurance, and not just for regular damage.
  • And don’t forget the privately owned drones: does your homeowners’ insurance cover it?
  • Want a great read about the scary side of drones? Check out Daniel Suarez’ “Kill decision”

Insurance Leader, IBM Institute for Business Value

More InsurTech stories

To energize innovation in financial services, take it outside

Financial companies have always been innovators. But in this age of digital transformation, innovation in financial services is more important than ever to stay competitive. Innovation processes, traditionally limited to product development, are now spreading throughout the entire organization. Many companies, however, are not yet well-positioned to reap the benefits. When researchers from the IESE […]

Continue reading

Four ways to stem the growth of financial crime in insurance

Insurers have long understood that the ability to quickly detect fraudulent claims not only stems losses, but also minimizes the impact to legitimate customers as well. But as more complex financial crimes like money laundering, employee fraud, and corruption have gravitated toward insurers more recently, many don’t have the programs in place to combat these […]

Continue reading

How can insurers stay relevant when insurance ceases to be mandatory?

Insurance and insurers have been around for millennia, with modern insurance starting in the U.K. more than 300 years ago. For much of this time, incumbent insurers have been protected from competition by four big barriers: regulation, the law of large numbers, the trust nature of insurance, and, last but not least, the inertia of […]

Continue reading