Business First May-June 2017 Business First May 2017 | Page 46

INSURANCE
Drone Insurance has landed
in Northern Ireland
Lana Cairns; Marketing at Find Insurance NI and the pilot behind Aviate Protect
ocal Insurance Broker, Find Insurance
NI, has become the first Broker in
Northern Ireland to launch Drone
Insurance for the entire UK Market.
Trading under the name, Aviate Protect,
Find Insurance NI has worked closely with
Global Aviation Insurers to create an
innovative new product for the commercial
drone market.
From as early as 1946, American magazine
Popular Science stated that: “Drones, as the
radio­controlled aircraft are called, have
many potentialities, civilian and military.”
In saying this, it took almost seventy years
before these potentialities were realised.
Only within the last three years has the
demand for drones (also known as UAV, RPAS
or SUA) seen rapid growth in the commercial
sector.
In fact, a recent study by PwC on the
commercial applications of drone technology,
valued the emerging global market at over
£104 bn.
The recent growth and adoption of drone
technology, is largely credited to the
increasing demand for drone­generated data
across a range of industries from agriculture
to filmmaking.
Significant advances in sensor technology,
communication links and satellite positioning
systems, have enabled drones to be adopted
across such a wide range of commercial
applications; many of them unthought­of
even a decade ago Therefore the industry
relies heavily on the innovation of
manufacturers.
The drone revolution noticeably took off in
2015. In that year, there were 1,971 new Civil
Aviation Authority (CAA) approved
Commercial Operators. This was up from just
one in 2014.
In the UK, pilots operating drones for
commercial purposes, must acquire annual
permission from the CAA, known as a
Permission for Commercial Operations
(PfCO). This is valid for up to 12 months and
is subject to annual renewal.
However, before a pilot applies to the CAA
for this permission, they must first
demonstrate their capability by undertaking a
CAA approved training course.
The training course involves the
assessment of aviation theory, a practical
flight test and also covers the basic
procedures necessary for pilots to conduct a
flight.
Once completed, pilots must obtain suitable
drone insurance that meets the requirements
specified in EC Regulation 785/2004;
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44 www.businessfirstonline.co.uk
subsequently creating a new growth market
for insurers.
As the driving force behind Aviate Protect,
Lana Cairns commented: “Through a personal
interest, it became clear that the existing UAV
insurance offering was limited.
“UAV Operators were forced to take out
cover they didn’t need, at Premiums that
were difficult to justify.
“We therefore spotted a gap in the market.
We then decided to develop our own UAV
Insurance product and create a new brand
known as, Aviate Protect.
“As a team made up of UAV enthusiasts, we
have substantial knowledge of the industry.
We’re aware of the latest UAV developments
and how risks are significantly lowered with
the rapid advancement of technological
features, such as extra redundancy features
and sense and avoid systems.
“Our policy allows UAV Operators to pick
and choose their own level of cover. Only
covering them for what they really need.
“We recognized that it was essential for us
to develop a product that was not only
appealing in terms of the cover and choice
available, but also one that proves cost­
effective to the consumer.”
Colin Mullan, Director at Find Insurance NI
said: “UAV technology is rapidly advancing
and as a result, we see a clear market
potential.
“The market is constantly evolving and it
has already seen some notable changes. Until
recently, television and filmmaking has
accounted for 75 per cent of UK commercial
drone activity, according to ARPAS (the
professional trade association for Remotely
Piloted Aircraft and Systems).
“However, this is no longer the case, with
property and construction now dominating as
the largest sectors adopting UAV technology.
“Having recently launched our UAV product
to the UK market, it didn’t take long for our
phones to start ringing; highlighting the
existing level of demand. The interest we are
already experiencing is phenomenal and we
hope that this continues.”
The potential of drones is hard to deny.
However, effective regulation is a key factor
for insurers’ confidence in this emerging
industry.
While the market for drone insurance is
relatively small at present, it is expected to
experience significant growth as the
projected expansion of the drone market,
along with the diversity of potential
applications continues to increase.
The CAA have developed a Dronecode;
which is a simple set of rules and guidelines
established in legislation which outline how
to fly drones safely and within the law in the
UK. Some of these include:
• Keep your drone within your line of sight
and at a maximum height of 400ft (120m).
• Always fly your drone well away from
aircraft, airports and airfields.
• A drone must be flown at least 50m away
from a person, vehicle, building or structure
not owned or controlled by the pilot.
• Drones must not be flown within 150m of
a congested area or large group of people,
such as a sporting event or concert.
For more information on Aviate Protect,
visit: www.aviateprotect.com