Sompo partners with Flock to provide insurance coverage for drones
Sompo International Holdings has entered into a long-term partnership with Flock, a UK insurtech that provides data-driven insurance solutions to commercial drone operators.
By increasing the availability of insurance for drones, Sompo said it is supporting the future of unmanned aviation which can be used to develop cargo deliveries, flying taxi passenger flights and drone swarm shows. The re/insurer vowed to support Flock’s aggressive growth strategy.
The partnership combines Sompo International’s aviation and aerospace insurance underwriting experience with Flock’s real-time risk algorithms. Flock’s range of products for the drone industry already protect thousands of pilots across the UK and Europe, and the company is exploring how its proprietary technology could be applied in other specialty lines.
Julian James, chief executive of international insurance at Sompo International, called on insurers, brokers and disruptors to work together to develop innovative responses to emerging and evolving risks such as unmanned aviation.
“Drones have multiple applications and are set to transform a range of industries from e-commerce to risk management and crisis response,” said James. “The sheer breadth of applications means the global commercial drone market is expected to be worth in excess of $40 billion by 2025.”
Ed Leon Klinger, chief executive officer at Flock, noted that vehicles are increasingly connected, autonomous, and powered by real-time data. “By combining Flock’s data-driven approach to risk with Sompo International’s significant expertise and established global distribution networks, this partnership marks an important milestone in the evolution of drone insurance globally,” he said.
Andrew Metcalfe, Sompo International’s senior vice president for London market aerospace insurance, predicted the increasing use of automation will be a key factor in the development of transportation in the future.
“Flock’s technology platform has the ability to deliver significant benefits, including the real-time use of data to provide insight into developing efficient operations and enhanced safety management systems, increasing the operational footprint of unmanned aerial vehicles,” he said.