Erie Insurance announced on April 15 that it received conditional approval from the Federal Aviation Administration (FAA) to use the unmanned aircraft system (UAS) — commonly referred to as drones — in the company’s claims and underwriting processes.
The FAA approval allows the Erie, Pennsylvania-based insurer to operate the UAS to conduct research and development at the company’s own facilities and property; surveys and inspections; and risk assessment, risk management, loss prevention and underwriting. Erie filed a petition with the FAA on Nov. 14, 2014, seeking permission for commercial operations of small unmanned aircraft.
Erie Insurance will be using two DJI Phantom 2 Vision Plus drones it currently has for claims and underwriting. “We’ll be using the two drones we have for claims and for underwriting rather than simply research. We hope to be able to start using them in the next few months,” Erie Insurance spokesperson Leah Knapp said.
“At Erie, we see drones as high tech meets human touch,” said Gary Sullivan, vice president of property and subrogation claims at Erie Insurance.
“Drones will help our claims adjusters get an early look at potential damage without putting themselves in harm’s way due to unsafe conditions, such as on a steep roof or at the site of a fire or natural disaster,” Sullivan said.
Sullivan added, “The sooner we can get in and assess damage, the sooner we can settle claims and help make our customers whole again so they can move on with their lives. We’re proud to be one of the first insurance companies at the forefront of this next chapter in claims innovation.”
The FAA’s approval extends until April 30, 2017, unless it gets superseded or rescinded earlier. The FAA is in the process of finalizing a set of commercial drone rules that it proposed in February. The process is expected to take at least a year. Until the rules are finalized, the FAA will still need to grant exemptions for the commercial use of drones, including by insurers.
The approval is described as conditional because the insurer will be required to adhere to a list of conditions, including limiting flying speed to 100 miles per hour and requiring operators to maintain a line of sight with their drone.
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