Brokers’ association launches scheme to take advantage of £42 billion opportunity

BIBA opened its first face to face annual conference in three years with the launch of new cover which will target operators of both commercial and recreational drones.

Thousands of delegates have travelled to Manchester for the event which opened its doors today and BIBA used the chance to announce the new scheme in conjunction with Coverdrone. The product will provide BIBA members full access to Coverdrone’s products enabling them to offer niche insurance protection to their customers.

The cover is fully compliant with aviation insurance requirements and has been designed with offers high levels on indemnity and flexible policy periods.

The UK drone market is set to boom with PwC predicting that the market will be worth £42 billion to the UK economy by the end of the decade and will deliver £16 billion in cost savings.

“The level of cost savings will vary between industries, with the UK’s technology, media and telecoms (TMT) sector reaping the biggest cost reductions, at some £4.8 billion by 2030,” said PwC. “Other sectors including financial services, transport and logistics, and government services have great potential to see major savings.

“These savings will in turn help the UK economy address one of its major long-term challenges: productivity. Cost reductions from drone usage will feed into an increase of 3.2% in “multi-factor” productivity across the UK economy and contribute to large GDP uplifts in many industries: £8.6 billion in construction and manufacturing; £7.7 billion in wholesale, retail trade and food services; and £11.4 billon in the public sector (including defence, health & education).

PwC said the impact on jobs will be “substantial”.

“The combination of drones and automation may initially lead to some posts becoming redundant, but over time the gains in cost savings, productivity and consumer demand generated by drones will create new jobs and have a transformational impact on how we work and live.

“Taken together, these positive impacts will result in explosive growth in the number of drones in UK airspace. Of the 76,000 drones that we project will be flying across UK skies by 2030, over a third (36%) will used by the public sector, including for defence, health and education, contributing to a safer UK.”

Mike Hallam, BIBA’s head of technical services said: “Coverdrone provides a market leading solution for commercial and recreational drone operators, and these covers add another string to the bow of our members helping them find insurance for customers large or small. We are delighted to bring them aboard.”

He added in choosing their partner they had focused on Coverdrone’s “extensive knowledge” of the drone insurance sector “having been the market leader since 2007. Their offering will cater for small or large fleets of drones, including use at light shows and drone swarms”.

Andrew Heath, director at Coverdrone, said: “We are delighted to have been chosen to offer our product to BIBA members. We have been BIBA members for many years and have found their scheme facilities vital when securing business. Service standards are at the forefront of our business, and we look forward to building lasting relationships with BIBA and their members.”

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