The use of unmanned aircraft systems (UAS or "drones") byindividuals and industry continues to grow.

According to the Federal Aviation Administration (FAA) drone sales are expected to grow from 2.5million units in 2016 to 7 million in 2020. PWC Global has calculated that the overallemerging global market for business services using unmanned aircraft isover $127 billion. The impact on the insurance industry is expectedto be $6.8 billion.

Insurance companies, quick to recognize this potential impact,have taken their first tentative steps toward droneimplementation. 

Efficiency of performing inspections

This initial enthusiasm is understandable. A 2014 J.D. Powerstudy found that the length of time spent in each stage ofprocessing a homeowner's claim (cycle time) was the single mostimportant metric that drove customers to stay with their existingcarrier or seek a new one. Drone use has the potential to reducethe time to inspect a loss and allow more inspections per day aftera major event. This directly impacts the speed with which customersare able to receive settlements.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.