REPORT: Growing market usage for aerial drones
AM Best has released a new briefing that explores the rapidly growing drone industry and the unique risks faced by US commercial lines insurers.
This recent Best Briefing, titled, "Growing Market Usage for Aerial Drones," states that drone manufacturers could face product liability issues, while inappropriate misuse of drones could also bring insurability problems.
Insurers and insureds await finalisation from the Federal Aviation Administration (FAA) on proposed regulations and guidelines that were introduced in February 2015. While the FAA has been granting exemptions for drone flights to public agencies for years, waivers for certain commercial users have been granted on a case-by-case basis, with hundreds of applications still pending. The majority of policies for drones are provided through modified aircraft hull liability programs for general aviation.
Currently, there are about 20 insurance companies that write this coverage. The risks posed to insurers by the commercial use of drones include the intrusion into private and commercial airspace; population safety and property damage; and security and privacy concerns. While most standard homeowners' insurance policies exclude liability coverage for aircraft, nearly all insurers include coverage for "model or hobby aircraft," like personal drones.
Although it is impossible to determine the amount of premium derived from unmanned devices, since it is not tracked separately, it is anticipated that whatever the amount, future premium could be multiples of this once the FAA laws are passed and more waivers are granted.
The commercial use of drones presents exciting possibilities to a number of industries, but as with any new technology, unique and unanticipated risks arise. Drones represent a small but rapidly growing segment of the aviation industry.
In some ways, drones are similar to remote controlled model airplanes, but current drone technology also draws from military developments, especially with respect to remote control capabilities and imaging quality. Aerial drones, as distinct from surface or subsea drones, can be either fixed wing or rotary wing. For current commercial use, rotary wing craft is by far the dominant type.
These, with their ability to hover and manoeuvre quickly, primarily are useful for imaging and surveillance, along with some ability to deliver small packages. For larger payloads, a fixed wing craft is necessary, but it would require a runway and long distance capabilities to be practical and useful. This has led to discussion of pilotless cargo planes and eventually passenger aircraft.
For a full complimentary copy of this briefing, please click the following link:- A.M. Best Briefing US P/C: Aerial Drones
SAP Ariba to digitise procurement for Expo 2020 suppliers
The global trade event, this year hosted in Dubai, was rescheduled from last year and will now take place between 1 October 2021 and 31 March 2022.
As the event’s Innovative Enterprise Software Partner, SAP Ariba solutions will fully digitise and automate the procure-to-pay lifecycle, providing a streamlined experience for thousands of market leading, global suppliers and strengthening the global supply chain with enhanced transparency and efficiency. The cloud-based platforms operate through on SAP Ariba’s UAE public cloud data centre and connects to the Ariba Network.
Expo 2020 "a long-term investment"
Mohammed AlHashmi, Chief Technology Officer, Expo 2020 Dubai, said the world trade event is “a long-term investment in the future that aims to enhance opportunities for sustainable business connectivity and growth”, which stretches beyond Expo 2020’s six-month window.
“Our partnership with SAP is an example of what can be achieved with the invaluable support of our technology partners to host one of the most digitally advanced World Expos ever,” he added. “The implementation of SAP Ariba solutions has transformed our end-to-end procure-to-pay cycle and helped set new standards of procurement automation for projects of this scale.”
To date, more than AED 1bn has already been transacted by Expo 2020 suppliers through SAP Ariba. The platform promotes collaborative partnerships and allows registered users to participate in sourcing events, negotiate and initiate contracts, and centralise their invoicing and payments in real time.
Claudio Muruzabal, President of EMEA South, SAP, said: “Expo 2020 Dubai is demonstrating global best practices in digitising its procurement process with SAP Ariba solutions to help gain visibility into its spend, tighten collaboration with its suppliers, and achieve process automation, including completely paperless invoicing.”
About Expo 2020 Dubai
Expo 2020 will take place in Dubai and is the first of the long-running World Expos to be hosted in the Middle East, Africa and South Asia territory. The original World Expo, called the Great Exhibiton, was hosted in 1851 at the Crystal Palace in London, designed as a showcase for the innovations of the Industrial Revolution.
Expo 2020 was originally due to run 20 October 2020 to 10 April 2021, but was last year postponed in light of COVID-19 restrictions - though some business has already taken place virtually. The event will place greater emphasis on innovation in sustainable solutions through the Sustainability District, blending technology and culture. It is expected that around 70 per cent of the 25 million attendees will be international visitors.