Property insurance firms like State Farm and Allstate are preparing to use drones to inspect commercial and residential properties in Texas and Louisiana they insure that were damaged by Hurricane Harvey, according to Slate. The companies expect to start inspecting properties early next week, once the storm completely subsides.
The benefits of using drones to inspect damaged properties are magnified during natural disasters like Hurricane Harvey. To speed up inspection processes and reduce labor costs, some insurers have started using drones to assist human workers in inspecting damages on properties they insure. But this is especially helpful in cases of major hurricanes like Harvey, where many roads can’t be used at all and insurers have to wait days to visit the site of the damage. But by using a drone to reach and inspect the properties, they could inspect the same number of properties in a shorter time frame despite the region’s infrastructure being unusable.
And that’s likely good news for the drone industry.
More insurers could jump on the drone bandwagon. Only 20% of global property insurers currently use drones to inspect damaged properties, but this could climb higher in the coming years. That’s especially likely as more insurers see the benefits of using drones to inspect damaged properties in the wake of natural disasters, which could push drone adoption in the insurance industry to new heights.
And if that occurs it’ll give the entire drone industry — from manufacturers to analytics and software platforms — a boost. If more insurers come to use drones to inspect properties in the coming years, that’s likely good news not just for drone manufacturers, but also for software and mapping platforms for drones like DroneDeploy. That’s because, unlike some other industries where drones are used, insurers will need the most accurate maps, software, and camera capabilities to properly inspect homes and buildings that are damaged. Furthermore, that means that the insurance industry might be one of the leading drivers of adoption, as annual drone spending climbs 50% to reach $12 billion in 2021.
The global insurance industry is worth nearly $5 trillion, and insurance companies are at risk of losing a share of this valuable market to new entrants. That’s because these legacy players have been even slower to modernize than their counterparts in other financial services industries.
This has created an opportunity for a group of firms known as insurtechs. These startups are leveraging new technology and a better understanding of consumer expectations to increase efficiencies in the insurance industry. Some are helping incumbents deliver better end products, while others are directly competing with legacy players .
Sarah Kocianski, senior research analyst for BI Intelligence, Business Insider’s premium research service, has compiled a detailed report on insurtechs that:
Via Business Insider