SEOUL, Feb.10 (Korea Bizwire) – With drones at the center of attention as a future growth industry, insurance companies are preparing for serious competition to take the lead in the blue ocean which is insurance for drones.
The increasing attention given to drones themselves has provoked interest in the possibility of drone accidents, and indemnity insurance companies are quickly taking steps to develop insurance policies limited to drones.
Hyundai Marine & Fire Insurance has been one of the first movers in the industry. According to analysts, Hyundai Marine & Fire Insurance launched a group insurance product called ‘Hi-Drone Insurance’.
The insurance provides compensation when a drone is damaged due to an accident, and legal liability for damages to other drones caused by the subscriber’s drone.
Special insurance plans can be purchased by using the drone as collateral.
Since the plan is a group insurance product, individuals cannot subscribe, but purchasing the insurance as a club or association is possible.
Officials from Hyundai Marine & Fire Insurance emphasized the importance of insurance for drones since the government has a strong will to promote drone industries, as unmanned aircraft have various potential uses such as rescue work and crop-dusting.
Other insurance companies such as KB Insurance and Hanwha Non-Life Insurance are said to be considering entry into the drone insurance market in the near future.
Officials from the two companies admitted that they are going over plans to launch products for drones, but commented that they have not yet set a date to launch their products.
However, most industry officials predict that a majority of indemnity insurance companies will jump into the drone insurance market in the end. “The fact that the drone market will show great growth also means that the drone insurance market will grow too. We assume that each insurance company is secretly conducting research to get an upper hand in the market.”
Global insurance giant AIG launched the first drone insurance product in the U.S. in October 2015.
The ‘2016 Prospect Report on Drones’ issued by the Korea Internet and Security Agency in December last year picked insurance as one of the industries that would be influenced by drone businesses, along with IT, communications and agriculture.
By Francine Jung (email@example.com)