Innovation Project Summary Glimpse

Drone Insurance - no history, no data, no coverage?

With the increase of civilian and commercial
use of drones comes a new market for
insurance products and services.

4
Weeks
5
Members

Toronto
2017
JUL - AUG
1
MVP
logo-cycle

PROBLEM

Drone fliers do not have options to protect themselves or their drones when they fly.

Design and create a product offering for personal and
commercial drone insurance

WHY?

The Drone Experience Pain Points

RECREATIONAL
  • Drones are a tool
  • To improve business prospects
  • Stand out from competition
  • Limited pricing information until full application is submitted
PROSUMER
  • Drones are a toy
  • To improve photography
  • To impress friends
  • Welcomes expert advice
  • Able to monetize their hobby
  • Limited pricing information until full application is submitted
INSURER
  • Low engagement results in low take-up
  • Inability to collect and use flight data
  • Insuficient data to quantify basic risk and acceptable risk classes
  • Available historical data is both scarce and limited in relevance
  • Using the traditional distribution method for policies
UNDERWRITER
  • Insuficient information to create quotes
  • Insuficient data to quantify basic risk and acceptable risk classes
  • Would like more detailed financials
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Discovery

How can insurers gain insights on the new risks, in order to develop adequate risk models?

How can insurers design a product offering for personal and commercial drone insurance?

drone

SOLUTION

The group decided on two possible approaches, both focus on data gathering and social sharing. Creating a stand-alone insurance product.

A

Launch a community App to provide a digital social experience for pilots to meet, learn and gamify their flights with others.

The goal would be to construct a credible risk model and rating matrix for the stand-alone insurance product using flight data from the insured drones.

drone_1

B

Launch an introductory stand-alone insurance product, with one-size-fits-all pricing that targets the ‘prosumer’ class.

To broaden the scope of this insurance product over time, its digital experience should incorporate the required ongoing data discovery aspect.

drone_2
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ESTIMATED IMPACT

Brings improved data quality through new digital tools

Gamification approach makes data gathering user-friendly and sustainable

Lower friction points for the customer, so they remain engaged

Increases profitability for all the stakeholders

Drone5

New Data Acquisition

increase

underwriters access to policyholder flight data and behaviour

Drone6

Proper Margins

accuracy

charge proper premiums while allowing for usage based discount pricing

Drone7

Reduced Fraud

detection

service which combines user data with publicly accessible social media data

RESULTS

During this 4 weeks sprint, the team identified the problem statement and developed solutions to meet the needs of drone users.

5
Empathy Maps
15
User Interviews
171
Surveys
25
Wireframes
15
MVP Screens
2
Prototype Iterations
1
Innovation Report
3
Project Presentations
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