Many services, particularly over the course of the previous couple of years, have become Uberised. What is mean by that, effectively, is that business has shifted away from how things have always been done (i.e. the slow moving taxi service), and towards a model of meeting consumer needs, on demand. To anyone who hasn’t been living under a rock (or in a place where uber means nothing more than something to an extreme degree), this is quite obvious, and in hindsight, seems like a logical progression given the advances of new technology.
An industry that has yet to make that progression is insurance. Traditionally a slow-moving, giant-filled industry with an enormous positive influence on society, insurance companies large and small have and continue to finance the risk associated with every day life, providing a safety net against a multitude of misfortunes. Given rapidly developing technology however, new challenges are on the horizon, including risks not previously conceived of. These new challenges and risks cannot be discounted, and as a result, innovation is becoming a necessity for that safety net to remain effective.
The Value of On-Demand Insurance
On-demand insurance is a simple proposition: use technology to activate the right insurance coverage when you need it. When you don’t need it, you don’t pay for it. What this does is take the control away from the insurance company and puts it into the hands of you, the consumer, allowing you to only pay for the risks that you incur. This does require tradeoffs: although the insurer gives up control of the insurance contract, they also gain access to data. The underside of this tradeoff is that greater access to data means better risk analysis, and giving up more data means getting a more accurate price for the risks incurred.
The Value for Drones
Drones continue to prove an ever-widening circle of useful applications, from mining to agriculture, photography to search and rescue. Despite this application, much of the work associated with drone operation is dependent on contract-to-contract work. For this reason, Drones are uniquely placed to benefit from on-demand insurance.
Precision Autonomy’s pay-as-you fly insurance provides exactly that – coverage, on-demand, based solely on the risk that is incurred. What does this mean? Low upfront costs allowing for the year-round coverage – including storage, fire, flood and theft coverage, and full-flight insurance, charged by the minute. Only pay for insurance when you’re conducting flights for your business.
Uberising insurance, and providing its benefits on-demand is something that, with hardware and software integration, is fast becoming a reality. What this does is allow insurance companies evolve their service, and in the process, create new ways to deal with the risks of tomorrow, and coming up with innovative, on-demand solutions which cater to the drone operator’s needs.