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Published byGabriel Hoover Modified over 9 years ago
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Unmanned Aircraft Systems (UAS) THE FUTURE OF DRONES
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2 A New American Pastime?
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3 Our Discussion Today Some UAS Statistics What is an Unmanned Aircraft System Current Regulatory Scheme in United States Commercial Uses – Applications in Key Industries Insurance and Underwriting Issues The Future/ Conclusions Questions?
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Some UAS Statistics
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5 The Buzz Overhead
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6 Commercial Uses By Industry (Section 333 Exemptions) Data from Center for the Study of Drones at Bard College. As of 7/31/2015
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What is an Unmanned Aircraft System? Terms and Definitions
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8 Unmanned Aircraft Systems (UAS) An unmanned aircraft system (UAS) = unmanned *aircraft that can fly autonomously and does not have a pilot onboard. (*including the operating systems, controls) In this context - small UAS (under 55 pounds)
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9 An aircraft by many names… A few commonly used alternatives to the term DRONE… –UA – Unmanned Aircraft –UAV – Unmanned/Unpiloted Aerial Vehicle –UAS – Unmanned Aircraft System – Next Slide –RPV – Remotely Piloted Vehicle –RPA – Remotely Piloted Aircraft –OPA – Optionally Piloted Aircraft –ROV – Remotely Operated Vehicle –RPAS – Remotely Piloted Aircraft System For the purposes of the aviation insurance product these are all essentially the same thing.
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10 The Components of an Unmanned Aircraft System The UA or UAV is only one part of the operation/risk. The “System” includes some/all of the following: –Unmanned Aircraft The air vehicle itself –Payload The business end of the system The systems that collect or transmit data –Mission Support Equipment Equipment needed to transport, maintain, launch, and recover the UA –The People The pilot/operator, visual observer, payload operator, etc. –Data Link The communications between the ground and UA –The Space Airspace, Air Traffic Control, Weather, and Regulations applicable to a given flight –Command and Control Internal/External
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12 DJI - UAS Specs Phantom 2V+ (no longer in production) Inspire 1 Weight (Battery Included) 6.47057 lbs Max Ascent Speed 5 m/s Max Descent Speed 4 m/s Max Speed 22 m/s (ATTI mode, no wind) Max Flight Altitude 4500 m (14,763.8 ft) Max Wind Speed Resistance 10 m/s Max Flight Time Approx. 18 minutes
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Current Regulatory Scheme
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14 Classifying the Flight FAA classifies use of UAS in the national airspace as: A.Public (Non-Military) B.Civil (Commercial) C.Hobbyist (Model Aircraft)
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15 Federal Framework (in general) 500ft, airplanes (rural) 400ft UAS (current) 83ft, private landowner Graphic (modified), curtesy of The Wall Street Journal restricted
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16 Public Use Examples of Government agencies and organizations: State, County, or City governments, Fire Departments, Police Departments, Public Universities. For public aircraft operations, the FAA issues a Certificate of Waiver or Authorization (COA) that permits public agencies and organizations to operate a particular aircraft, for a particular purpose, in a particular area. The COA allows an operator to use a defined block of airspace and includes special safety provisions unique to the proposed operation. COAs usually are issued for a specific period – up to two years in many cases.
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17 Civil Use (aka Commercial) Any operation that does not meet the statutory criteria for a public aircraft operation is considered a civil aircraft operation and must be conducted in accordance with all FAA regulations applicable to the operation. There are presently two methods of gaining FAA authorization to fly civil (non-governmental): –Section 333 Exemption –Special Airworthiness Certificate
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18 Civil Use Section 333 Exemption – a grant of exemption in accordance with Section 333 AND a civil Certificate of Waiver or Authorization (COA); this process may be used to perform commercial operations in low-risk, controlled environments.Section 333 Exemption “Blanket” COAs have been issued since March, 2015 “Plan of Activities” must be filed within 3 days of flight
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19 Civil Use Special Airworthiness Certificate (SAC) : applicants must be able to describe how their system is designed, constructed, and manufactured, including engineering processes, software development and control, configuration management, and quality assurance procedures used, along with how and where they intend to fly. (this seems to be done more with certain kinds of aircraft-like experimental or test).Special Airworthiness Certificate (SAC) The Exemption process is very involved, but the FAA has gradually relaxed the application/approval process.
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20 The “Fine Line” Between Civil and Hobbyist Classifications Do I need a Section 333 grant of exemption if I'm not charging for my services? A. Unless you are flying only for hobby or recreational purposes, you will need FAA authorization via a Section 333 grant of exemption to fly your unmanned aircraft system (UAS) for your business. This applies even if you are only flying to supplement or aide your business and not charging fees for doing so. This according to the FAA.
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21 Hobbyist -or- Civil Use (Commercial)?
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22 Federal Framework FAA’s Notice of Proposed Rulemaking (announced February 15, 2015): a framework of regulations that would allow routine use of certain small UAS (under 55 pounds) conducting non-recreational operations (aka – Commercial Use of Drones). The new rules would not apply to model aircraft. Model aircraft operators must continue to comply with existing rules. Comment period has ended. 4,585 comments were received. (an example of one is included in your packet)
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23 Civil Use This is very general illustration. Criteria is summarized in your handout entitled “Overview of Small UAS Notice of Proposed Rulemaking”
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24 The “Amazon Proposal” for sUAS use
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Some Commercial Applications
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26 Agriculture Increased Production, Yields Maximize Resources Cost Efficient Increased Data Points Advantages Precision Chemical & Water Application Land Monitoring/Surveying Crop Imaging Vegetation Mapping Livestock Monitoring Usage
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27 Construction & Infrastructure Cost Efficient Accessibility Decreased Risks to Staff, Equipment Accurate Data Points Infrared technology Advantages Pipeline Monitoring Bridge and Infrastructure Inspections Smoke Stack Inspections Power line inspections Usage
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28 Weather Monitoring Advantages Cost Efficient Less Human Exposure Reduced Risk Usage Collect Data from Dangerous and Remote Areas Improve Forecast Accuracy New Data Information about Storm Changes Surveying and Mapping
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29 Media and Entertainment Filming Expands Creative Filmmaking Time and Cost Efficient Increased Safety Advantages Improved Action Filming Lower Overhead Shots Increased quality of Videos/Images Usage
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30 Public Safety and Law Enforcement Accelerated Response Time Improve Situational Awareness Diminish Human Error Cost Efficient Advantages Search-and-Rescue Missions Crime Investigation Surveillance Bomb Squad, Hostage Response Shoreline, Coastal Surveillance Traffic Management Usage
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31 Research and GIS Time and Cost Efficient Worker Safety Clearer Images Improved Accuracy Mitigates Weather Delays Advantages Data Collection 3D Mapping Remote Sensing Flood Maps Wildlife Conservation / Science Usage
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32 Insurance and/or Claims Reduce Fraudulent Claims (eg. Agriculture, WC) Time and Cost Efficient Lessen Human Error Improve Customer Experience Safety – Accessibility to Damaged Areas Advantages Usage Collect Images of Losses Infrared technology detects leaks Gather Information on a Location before Insuring or prior to onsite inspection Other Risk Engineering or Modeling
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Insurance Issues
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34 Managing the Risks
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35 A Few “Insurance” Issues UAS = Aircraft ( Federal Aviation Administration vs. Raphael Pirker, decided 11/18/2014 ) “Aircraft” Exclusion in CGL Scheduled UAS & Equipment Scheduled Operators (training and knowledge are critical) Physical loss to hull, payload, parts, etc. Third Party Liability –Typical Exclusions: Terrorism, War or Hostile Acts; Unlawful Use, Nuclear, Asbestos, Pollution, Privacy Coverage Sublimits Terrorism is a “buyback” and needs specific consideration
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36 Underwriting Considerations Almost all aviation underwriting stems from four basic points of risk analysis. –Operator experience –Make and model information –Purpose of Use –Location of Operations Values and limits required –Aircraft –Payload –Ground Equipment Operational procedures/risk mitigation items Training UAS underwriting is based on traditional aircraft underwriting foundation
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37 Risk Examples: Commercial & Private Uses Collision with power lines Collision with large aircraft Collision with motor vehicles Disruption with other safety or rescue operations Spectator or Bystander injuries (eg. at events, public spaces) Other property damage Terrorism or hostile acts (malicious, unauthorized use) Privacy (Data Storage, Data Retention)
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The Future from deceptive to disruptive
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39 On the Radar – What’s Next Continued Technology Advances, Decreased Costs Growth in Precision Agriculture, Emergency Management Services Drone Deliveries Increased State regulatory intervention: Privacy v. Security Debate Monitoring and creation of “Best Practices” for service and maintenance records
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Questions ?
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41 Additional Resources www.faa.gov/uas - Federal Aviation Administration, UAS section www.faa.gov/uas http://knowbeforeyoufly.org/ - “Know Before You Fly” - AUVSI, AMA & Small UAV Coalition in conjunction with the FAA http://knowbeforeyoufly.org/ http://www.auvsi.org/home - Association for Unmanned Vehicle Systems International http://www.auvsi.org/home http://www.ncsl.org/research/transportation/current-unmanned-aircraft-state-law- landscape.aspx - National Conference of State Legislatures, Current Unmanned Aircraft State Law Landscape http://www.ncsl.org/research/transportation/current-unmanned-aircraft-state-law- landscape.aspx http://www.aig.com/unmanned-aircraft_3171_659651.html http://www.aig.com/unmanned-aircraft_3171_659651.html
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42 Disclaimer Certain statements provided herein are based solely on the opinions of AIG and are being provided for general information purposes only. Any opinions provided on economic trends should not be relied upon for investment decisions and are solely the opinion of AIG. The purpose of this presentation is to provide information, rather than advice or opinion. None of the statements or information are provided for the purpose of legal advice or opinion and should not be considered legal advice or opinion. You should contact your attorney to obtain advice with respect to any particular issue, question, or situation. It is accurate to the best of the presenter's knowledge as of the date of the presentation. Certain information may be based on information received from sources AIG considers reliable; AIG does not represent that such information is accurate or complete. Certain statements contained herein may constitute “projections,” “forecasts” and other “forward-looking statements” which do not reflect actual results and are based primarily upon applying retroactively a hypothetical set of assumptions to certain historical financial information. Any opinions, projections, forecasts and forward- looking statements presented herein are valid only as of the date of this document and are subject to change. AIG is not soliciting or recommending any action based on any information in this document.
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