An essay on unmanned aerial systems insurance and risk assessment

UAV technology has begun to integrate into the National Airspace (NAS), at an accelerated rate. Coupled with a high demand for civilian UAS applications and decreasing component prices, more UAS researchers, commercial operators, and manufacturers begin to fly. Despite a lack of government mandated insurance requirements and mission profiles deemed dull, dirty, and dangerous, the UAS industry is gaining momentum. However, as the UAV industry matures, unmanned aircraft will inevitably crash. In anticipation of these growing pains, insurance carriers must be ready. Unmanned aircraft present a unique matrix of risk endemic to the challenges of flight in the NAS. Underwriters and actuaries will be able to provide peace of mind to pilots and bystanders alike. Insurers must design policies to properly allocate liability and provide a safety net. UAS-tailored coverage will identify and quantify the unique characteristics of unmanned aircraft. Underwriters have just begun to adapt insurance products to suit the needs of the nascent sector. This analysis will outline the process of insuring UAS. Further, it will highlight how insurance companies should cope with the dynamic forces within the UAV market.