Agricultural drone operators and aligning insurance based on activity is a “key driver” for the market vertical, Flock has said.
The company detailed that agricultural drone insurance has traditionally followed that of a regular fixed annual policy but that is something that can be changed to the benefit of the operations.
In conversation with Flock’s drone partnerships manager, Tommy Wilson explained how flexibility is the way forward.
He said: “The core of Flock Enterprise is our ability to offer flexible pricing, cover and timeframes. This allows us to create completely tailor-made UAV insurance policies. We don’t take that lightly.
“Using our proprietary risk intelligence engine we create custom risk profiles for our enterprise customers. This allows us to work with the global underwriting communuty to unlock cutting edge insurance policies based on actual exposure to risk. This means the safer our customers fly, the less they pay for their insurance. It’s the same way we price flights for individual operators in our app but delivered at scale.”
The comments come as part of a conversation with Wilson about the company’s recent work with Hummingbird, explored in the video above.
Speaking about that partnership specifically, he continued: “For a company like Hummingbird which does agricultural surveying, they might have expensive assets but they’re actually conducting low-risk operations due to the remote environments they operate in and their careful choice of drones. We believe this should be reflected in their insurance premiums.”
“We worked with Hummingbird to help them truly understand and quantify the risk associated with their operations. We also helped create a policy that reflected the seasonal nature of their business. This means that during the winter when fewer flights take place, Hummingbird Technologies pays less for its insurance. This ability to deliver usage-based insurance at scale is unique and one of the reasons we’re now working with some of the world’s leading operators.
Wilson went on to expand more on how the partnership with Hummingbird came about.
He detailed: “Hummingbird is a leading agricultural surveying firm and they use drones as their primary tool for the job. Our work together came about because of the nature of their sector, their activities were low risk and seasonal but their insurance coverage didn’t reflect this.
“Previously they paid a fixed annual premium meaning they were in a tricky position where they were charged the same throughout the year regardless of the volume of activities and more importantly, the exposure of risk.
“So when we approached them with a solution to align the cost of their insurance with the actual activities it made total sense. That alignment was a key driver of our conversation.”
Broadening the offering out to other industries deploying drones, outside of the agricultural space, Wilson revealed how tailoring the offering and approaching each firm with an open mind is vital.
“We approach all customers differently, depending on their needs and their inherent exposure to risk, especially with the nature of drones being used to tackle risky operations in a lot of sectors.
“We act as a bridge between the slow-moving and often archaic insurance industry and the fast-paced technology providers of the future. Our underwriting partners love us because of our ability to identify, quantify and price risk in real-time and our customers love us for our ability to secure fully compliant insurance whatever their requirements may be.”