As Farmers Grow Drone Use, Privacy Issues Top List of Concerns
July 17 2018 - 9:54AM
Business Wire
Survey of Farmers Highlights New Risks and Opportunities in
Expanding Drone Market
The popularity of drones is flourishing on the farm. Three in
four U.S. farmers (74%) are currently using or considering adopting
the technology to assess, monitor and manage their farm according
to an April 2018 Munich Reinsurance America, Inc. survey of 269
U.S. farmers. Seventy-six percent (76%) of all respondents have
concerns related to drone usage: privacy issues (23%) topped the
list, followed by cyber security concerns over data captured and
transferred (20%), and potential damage or injury from the drone
(17%).
“As Federal Aviation Administration regulations open up the
skies to the use of commercial drones, we are seeing a growing
investment in the technology by farmers focused on precision
agriculture or smart farming,” said Jason Dunn, Strategic Products
Expert, Munich Reinsurance America, Inc. “Whether a farm has less
than 100 or more than 5,000 acres, drones can be the eyes and ears
for farmers that want to efficiently and cost effectively monitor
and manage crops, livestock and soil conditions. However, farmers
may be exposing their business to new risks related to drone usage,
and their insurance coverage may not have kept pace with the rapid
development and use of this technology.”
Of those who currently use the technology, it is nearly split
between farmers who contract with an outside company to operate
their drones (49%) and farmers who handle drone usage on their own
(51%). Eighty-three percent (83%) of respondents use drones on
their farms either daily or once a week or more. Drones are used
for or considered being used for crop monitoring (73%), soil and
field analysis (46%), and health assessment of [crops and
livestock] (43%).
“Fortunately, a majority of farmers are talking to their
insurance company about their drone usage,” said Dunn. Sixty-five
percent (65%) of survey respondents using drones have informed
their insurance company; 16% plan to do so. “Traditional commercial
insurance policies don’t cover or offer very limited liability
protection for drones. Farmers should speak with their agents or
brokers to insure that their policy protects against privacy claims
as well as bodily injury and property damage incurred as a result
of drone usage.”
Munich Re America offers a Drone Liability Endorsement that can
be attached to an existing commercial general liability insurance
policy purchased through a participating insurance carrier. The
endorsement, which provides bodily injury and property damage
liability and/or personal injury liability coverage for drones that
are under 55 pounds, is designed for small to medium size
businesses and farm and agricultural operations in the U.S.
Methodology
This online survey was conducted by Qualtrics, which conducts
research to capture customer, product, brand and employee
experience insights, in April 2018 and is intended to
represent the views of 269 U.S. farmers who participated.
About Munich Reinsurance America, Inc.
Munich Reinsurance America, Inc. is one of the largest
reinsurers in the United States. We provide reinsurance coverages,
specialty reinsurance, and risk management solutions to commercial
and personal lines insurance carriers, agents and brokers, program
administrators, and managing general agents. Our admitted and
non-admitted insurance company affiliates also offer specialty
insurance products. We provide insurance carriers with white label
products to help protect against the devastating effects of natural
catastrophes and emerging risks, while our Innovation Lab offers
client solutions in a rapidly evolving technology risk landscape.
We believe that by looking out for our clients’ best interests with
innovative risk solutions we can help build more resilient
communities and close insurance gaps.
Munich Reinsurance America, Inc., a subsidiary of Münchener
Rückversicherungs-Gesellschaft Aktiengesellschaft in München
(“Munich Re”), earns high ratings for financial strength from A.M.
Best Company. We serve our clients from our Princeton, New Jersey
campus and regional offices throughout the United States. For
additional information visit www.munichreamerica.com.
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Munich Reinsurance AmericaJodi Dorman, 609-243-4533Senior Media
& PR
SpecialistJDorman@munichreamerica.comwww.munichreamerica.comhttp://twitter.com/munichre_US