NAMIC Wants OK For Expanded Use Of Drones By Insurers

Recent allowances for commercial unmanned aircraft systems by the Federal Aviation Administration have expanded the ability of some insurers to safely and effectively make use of drones, the National Association of Mutual Insurance companies said today, but more needs to be done.

"Drone technology has evolved quickly, with new uses being developed seemingly every day, but our policymakers haven’t been able to keep up," said Jimi Grande, senior vice president of federal and political affairs for NAMIC. "Insurers, for example, could send drones to evaluate damage after a disaster, when the area may be unsafe for people to go into. That could speed the claims process and help victims of those disasters get back on their feet more quickly."

Currently, companies must receive an exemption from the FAA before using drones for any commercial purpose, but even these exemptions include strict limits on how drones may be used. In those exemptions granted most recently, however, the conditions for drone use have been improved to allow for a wider spectrum of drones to be used and for increased drone use over people if they have given their consent.

"The operational limitations imposed by the FAA are in general too constricting for meaningful drone use by insurers," Grande said. "We’re grateful that the FAA has recognized this and provided more functional conditions in the exemptions, and we encourage them to continue doing so as they craft final regulations for commercial drone use."

The FAA released a proposed set of regulations for commercial drone use in September 2015, but some of the limitations included are unwieldy and counterproductive. NAMIC has been working with Congress as it considers legislation to reform and reauthorize the FAA to address some of these concerns. In particular, the association has been advocating for the FAA to create a framework that could remove any unworkable operating restrictions on insurers’ post-disaster drone use. There are provisions directing the FAA to do exactly that in both the reauthorization bill the House Transportation and Infrastructure Committee approved in February as well as the bill approved by the Senate Commerce Committee today.

"The FAA is continuing to develop its commercial small UAS rule, and we urge it to work quickly to get commercial drones integrated into the national airspace in a way that is understandable and workable," Grande said. "In the meantime, developing an emergency process by which insurers can use drones to respond to natural catastrophes is imperative. With hurricane season just weeks away, it is unconscionable that technology that could help victims by speeding the recovery process would be sidelined rather than safely deployed."