In an area when there are such technological advances taking place, insurers and the insurance industry do not need to be left out. Yet, some are.
Like so many other industries and business ventures, drones have, and are making, a significant impact. Since 2016, when the FAA loosened the regulations on drones used comercially, more insurers have begun using them.
Unmanned aerial vehicles (UAVs), when integrated with AI, expedite claims process, reduces costs, and increases customer satisfaction.
Here are some of these and other ways drones are impacting the insurance industry.
Cost
Because drones are small and easy to maneuver and therefore do not require an airport for launching, they are much cheaper to use than any manned aircraft. Another advantage is reduction in the cost of workers compensation claims. By having drones, rather than people, in dangerous situations, insurers can prevent some on-the-job-injuries.
Speed
In assessing damage in large geographic areas, flying robots can speed up the whole process of issues related to insurance more quickly because they can travel faster over a large geographic area than human “boots on the ground.”
When a family, community, or region are devastated timing is critical. This is why it is so important and urgent for organizations to dedicate resources immediately and efficiently so that those devastated can get back on their feet.
The ability to shorten the time it takes for claims to be processed is obviously very important in order to be competitive in the insurance industry. A drone with sensors can be set up with an automated flight plan around multiple insured locations and be able to evaluate the properties and capture images. It is estimated that the amount of time saved is around 40-50%. This also means that the speed with which customers receive settlements as well as giving a more accurate sense of how and where some of the staff should be employed to address the issues.
Drones are valuable also in inspecting areas affected by major disaster areas such as floods and earthquakes. Access to a disaster area may be restricted by civil authorities for several days. Even if access is not restricted, the area may be too dangerous for adjusters to enter. By using drones equipped with cameras, however, adjusters can capture still photos as well as videos of damaged property, which can be used to process claims.
Safety
There is also less risk involved for claims adjusters. Because drones don’t require an onboard pilot, they can travel to places that are unsafe for human beings. They no longer need to climb ladders or go on roofs to assess damage; by using unmanned aerial vehicles (UAVs) they can remain in a safe area during their assessments.
When it comes to danger, roofs come to mind and this is why drones are commonly used for rooftop inspections. They are hazardous because many roofs are steep and/or have suffered fire damage. Cameras on drones can not only photograph entire roofs, but also capture detailed images that are not even accessible to an adjuster.
Drones are also used in inspecting damage of large structures, such as warehouses, which requires considerable time if inspected by an adjuster who would have to walk the distance, instead of having a drone fly distance.
Periodic boiler and pressure vessels inspections are required by state laws. Those who cover equipment breakdown insurance have to conduct such inspections for policyholders and other businesses. Because commercial boilers can be several stories high, they are difficult to inspect, not only because of their height, but also because of their size and dark interior. Here again, drones can easily, safely and quickly do the job that no adjuster relishes.
Risk Management & Pricing
Since insurance is about measuring risk and accurately pricing it, drones can be useful in collecting information about a property before a policy is issued. By capturing data on property features that make it less vulnerable, such as storm shutters, drones are more likely able to facilitate personalized premiums.
Because insurance claims have risen dramatically since 1970, UAVs are ideal in monitoring areas exposed to natural disasters such as floods, droughts, landslides, volcanic eruptions, blizzards, hailstorms, sandstorms, wildfires, tornados or hurricanes.
Because these are referred to as “disaster,” they are by definition dangerous. This is why drones are so useful in these situations as they can keep adjusters safe with very little risk.
Insurance companies often use Draganfly Inc. hardware, software, and services to quantify the impact of natural disasters and ensure human safety.
Drones may also be used to fly over car and rail accidents to also access the damage and to assist with the claims process.
Data
Aerial images taken by drones delivers larger and better quality data from which to develop catastrophe model components and any other information for analysis. Catastrophe model development, engineering analysis, exposure and claims data quality, which improves the feedback between underwriters, claims adjusters, and model validation, therefore can increase the ability to quantify risk.
Fraud
One of the uses for drones in the insurance industry is to conduct property insurance inspections. It is estimated that about 10% of loss in revenue comes from fraud. It is a common practice in the insurance industry to receive numerous reports of damages that were present prior to the event occured. By using drones to capture images—detailed, accurate data which allows for the creation of 3D models—of insured property or infrastructure before an event takes place, as well as after, companies can protect themselves from fraudulent claims. Such documentation will mitigate the risk of fraud.
AVs are especially useful when the insured property is extensive and/or difficult to reach. An example might be a farmer’s crops that need to be inspected. There may be issues that are easier for drones to spot from the air than for an inspector from the ground, since drones can be equipped with special lenses that can detect problems that are not visible to the human eye.
Drones are used for insurance claim inspection for auto accidents which can most likely be assessed with a simple camera on-site, used by an insurance customer or insurance company employee.
With new technology, it is possible to notify the insurance company of a car accident using a mobile app on the phone. The app can then transmit information, including coordinates, back to the insurance company, which can then take the coordinates and dispatch a drone to come out and gather pictures and video of the accident scene.Then the information from the drones can be used to document damage with photos and video and speed the process.
It is clear that drones make insurers’ jobs safer, and enable them to save time and money as they are freed to focus their attention and resources where they are needed the most.
