Drones, or unmanned aerial systems (UAS), arerapidly gaining the attention of virtually every industry as ameans of gaining greater efficiency in operations and reducingcosts.

Drone use has grown exponentially over the past few years,following development of drones for personal and commercial use.Because the use of drones has grown so rapidly, it has beendifficult to keep up with the opportunities they offer toindustries, including the insurance industry.

While most of us have heard about Amazon's proposed use ofdrones to deliver packages to customers in 30 minutes or less, orWalmart's plan to use drones to handle inventory at its warehouses,there are many more uses being implemented, tested orproposed.

Law enforcement

There are approximately 34 U.S. agencies using drones in publicsafety and law enforcement, an increase of more than 500% over thepast two years. The functions most advantageous to law enforcementoffer not only efficiency in operations but improve safety and helpsave lives.

Some uses include bomb detection, search and rescue, trafficcollisions, active shooter investigations, SWAT and tacticaloperations, analysis of crime scenes, surveillance operations andcrowd monitoring. Anytime a drone can be used to go into adangerous situation it improves the safety of our law enforcementand civilians, and a drone can capture a bird's eye view of crimescenes, accidents, disasters and searches more rapidly, in moreminute detail, and in a less costly and less dangerous way thanusing only humans can.

3-D imaging

Drones can now be equipped with 3-D imaging and high-resolutioncameras with video capabilities, enabling them to gather highlydetailed renderings, which can be saved, analyzed and used formultiple purposes in a variety of applications. These uses includesearch and rescue, archaeological discovery, and construction orstructural monitoring.

As evidenced by videos following Hurricanes Harvey and Irma,drones allow news organizations to provide real-time, close-upvideos of events as they happen. Because they are operable any hourof the day or night, irrespective of weather conditions, drones areproving effective for security patrols over large commercial orindustrial properties, securing the safety of the business as wellas the staff.

Disasters

Drones, some no larger than a model airplane, were sent into areas  of Texas andFlorida to assess hurricane and flood damage. In Texas, 43different organizations received special FAA authorization tooperate drones in the hurricane areas. Some insurance companieswere permitted to do inspections, as well as energy companies toensure there were no oil or gas leaks.

Drones are nimble and fast, and their high-resolution camerascan zoom in and look inside buildings for damage and missingpersons, all at a safe distance for the responders.

Agriculture

Agricultural drone use is beneficial forsurveying, monitoring, and weed or disease management of largecrops. In the future, there are predictions that swarms ofbee-sized drones will be able to fly among farm fields, mapping thelocation of weeds with the help of onboard vision systems. However,the U.S. is unlikely to be able to use drones for crop surveys inthe near future due to individual state licensing requirements andthe need to comply with both FAA requirements and Part 337 chemicaland toxic regulations.

Drones can be used to shoot video, take still photos,deliver medication and supplies, and inspect agricultural areas ortrain tracks after a major disaster. (Photo: Donan)

Construction

Drones can collect video footage for tracking and monitoringconstruction progress, and highlightingdeficiencies or needed resources. The use of drones provides a wayto monitor and evaluate resources and project status in real time,without interrupting work in progress while keeping workers andcivilians safe from the project site.

Related: Do you need insurance for yourdrone?

Medical deliveries

Drones could transport medical samples and supplies, includingdefibrillators that could help revive people from cardiac arrests.A drone carrying an automated external defibrillator (AED) could beactivated by a dispatcher and sent to an address provided by a 911caller so anyone nearby can use it. They could also be sent intoareas that may be inaccessible or otherwise difficult to quicklyreach by other means.

Testing is taking place for drones to deliver medical suppliesin rural Virginia, Bhutan and Papua New Guinea. UNICEF is testingthe feasibility of using drones to transport lab samples inMalawi.

Inventory control

Drone-based wireless systems could scan and locate items inwarehouses, and with each item identified by an RFID (radiofrequency identifier) sticker, the drone could pinpoint an item'sprecise location. A drone operator could then dispatch a smalldrone equipped with its own RFID tag to fly throughout thewarehouse, scanning, cataloging and localizing all of the RFIDitems in the warehouse. In addition to reducing the number ofpersonnel needed to conduct inventories, drones also allow accessto items normally requiring a ladder or lift to reach.

Hazardous equipment inspections

Drones offer a safer alternative for performing inspections ofoutdoor power and utility lines and equipment. Autonomous dronescan capture minute details in the surrounding environment andacquire precise and reliable scan results for inspecting downed ordamaged power lines, towers, wind turbine blades, mine shafts,dams, bridges, barges, electric and water utilities.

Related: FAA warns of drone impact risks with airplanes asuse grows

Drones are providing critical claims information toadjusters faster than ever before, while reducing the physical riskfor them at the same time. (Photo: Shutterstock)

Insurance claims process

Drones can also facilitate efficient claims adjusting.Adjusters must obtain an FAA Remote Pilot Certificate to flydrones, and be aware of the privacy regulations related to theiruse.

Drones are especially useful in gathering information followinga disaster, going into dangerous areas where there are debris anddowned trees and power lines. Drone use allows immediate datacollection and risk monitoring to assess flood damage and directclaims adjusters on the ground. Before drone technology, it wouldhave been weeks before adjusters could safely enter large floodedsites to assess damages.

Drones allow adjusters safe access to areas such as steep roofsto document accurate dimensions and take high-quality photos ofdamage. The drone-mounted cameras can zoom in to see damage on asingle roof shingle.

Conducting regular inspections with drone cameras can recordchanges in the condition of property and areas of deterioration tohelp address latent problems before they become a major crisis.

Loss control and prevention

Companies can prevent losses as well as measurethose that have already occurred by using drones to collectinstantaneous and precise data, particularly from naturaldisasters. In some situations, drones can identify risks fromdisasters as they are happening ranging from volcanic eruptions tofires, floods and hurricanes. With the collection of real-timedata, insurers could encourage people to avoid particularly riskyareas, helping their customers avoid undue risk and perhaps savinglives.

They could also be used to capture data for a loss preventionsurvey in areas that are inaccessible to an engineer or surveyor.Areas such as dams, bridges, electric utilities, water towers andwastewater treatment facilities, asphalt plants, solar power farms,oil and gas operations, or other sites that pose specific risks aregood candidates for drone inspections.

Real estate

The real estate industry is using drones to get betterphotographs and to market their listings. The detailed video dronescapture, including remote access and large and dangerous terrain,assist the industry in showing or completing property boundaries,property surveys, property development, identifying surroundingareas, and the interior and exterior of buildings.

Entertainment

Drones can shoot high-resolution and 3D images for films,including quickly capturing strategic film scenes, video weddingsand sports events. In addition, drones can operate in inclementweather that might prevent or distort other methods of capturingvideo.

Conservation

There are many conservation uses for drones ranging from thermalimaging to detect wildlife and people acting illegally, tosearching for dolphins in the Amazon River and monitoring trees andforests. Drones facilitate wildlife management when used to trackendangered species and to map out nesting areas that are in need ofprotection.

Other drone applications

Drone capabilities and uses continue to develop in tandem withadvances in technology and artificial intelligence. These new usesrequire additional coverage and provide unique risks that must beaddressed by insurers.

Related: Terror risk from small domestic drones has U.Sofficials worried

Karen L. Sorrell, CPCU, ([email protected]) is an editor withFC&S Online, the authority on insurance coverage interpretationand analysis for the P&C industry. She has an extensivebackground in commercial insurance underwriting. Visitwww.NationalUnderwriter.com for additional information aboutFC&S Online, it's the resource agents, brokers, risk managers,underwriters, and adjusters rely on to research commercial andpersonal lines coverage issues.