IUA Underwriting Groups discuss aviation drones

Aviation, Insurance and Reinsurance, IUA — By on July 22, 2015 at 9:34 PM
Chris Jones

Chris Jones

A coordinated international approach to the regulation of aviation drones is essential for the technology to thrive, the International Underwriting Association (IUA) has stated.

Rapidly expanding interest in the use of small unmanned aircraft systems (UAS) has prompted the subject to become a hot topic for London company market underwriting committees dealing with both aviation and general liability risks.

These IUA groups have recently discussed a number of challenges in providing insurance cover for the sector and the association has also corresponded with various supervisory bodies developing new rules governing UAS operations.

Chris Jones, IUA Director of Market Services, commented: “A clear and harmonised system of regulation would greatly benefit the development of drone technology. It would help insurers obtain a clear understanding about the potential size of the market and allow them to benchmark operators against recognised standards.

“In particular, it is important that there should be as much centralised data as possible about the number of drones in use and any accidents that have occurred. This would complement risk information procured as part of the insurance placing process and allow insurers to more accurately price essential cover.”

IUA member companies are already writing drone risks and working to offer new insurance products as the use of such technology develops. Expertise is required to analyse both potential physical losses represented by the aircraft itself and liability risks. The latter covers third party bodily injury and property damage, product liability and privacy issues.

The IUA has responded to consultations on the regulation of aviation drones from both the European Union and the Federal Aviation Administration of the US.

Mr Jones added: “Growth projects for the use of unmanned aircraft systems are quite dramatic, but there are still a number of safety, security and privacy concerns. The insurance industry has an important role to play in addressing these issues and helping the technology fulfil its promise by delivering benefits across a range of commercial applications.”

About the IUA

The International Underwriting Association of London (IUA) represents international and wholesale insurance and reinsurance companies operating in or through London. It exists to promote and enhance the business environment for its members.

The IUA’s London Company Market Statistics Report shows that premium income for the company market in 2013 was £17.445bn with a further £6.831bn controlled by London but written elsewhere. These results are based on a comprehensive survey of 57 companies and combined give an overall intellectual and economic premium total of £24.276bn for the London company market.

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