Risk manager survey reveals No. 1 concern with drones

The Risk Management Society Annual Conference held earlier this year in April provided the backdrop for a new survey that reveals the mood of risk managers on drones. Munich RE, an underwriter and risk management firm, used the on-site, in-person responses from 100 risk managers to create its survey that shows 61 percent of risk managers are most concerned about privacy with drones. 

“As the use of drone technology continues to evolve, the insurance industry will need to be prepared with innovative products and services to help its customers understand and manage the emerging property and liability risks involved,” said Gerry Finley, senior vice president, casualty underwriting for Munich Re, U.S. 

Results from the survey show 62 percent of risk managers believe that in five years drones will become a common practice for most commercial entities. In 2015, only 37 percent believed the same to be true. While only 7 percent of risk managers are currently deploying drones in their own practice, roughly half said they would explore or consider using drones in the future.   

Munich Re’s participation in the drone industry took off in July. The company released a US drone liability endorsement that can be linked to an existing commercial general liability insurance policy purchased through a participating insurance carrier. Included in the endorsement is bodily injury and property damage liability along with personal injury liability coverage for drones under 55 pounds. According to the company, the endorsement was created for small- to medium-sized businesses or farm and ag operations that use drones to support other sources of revenue.