SkyWatch.ai is one of the first companies to use tech in order to streamline drone insurance, starting as early as 2018. Tens of thousands of customers later, the successful US drone insurance provider gathered some inside data regarding recent trends in the drone insurance industry. Here’s a glance at their fascinating insights and numbers.
What drone insurance tells us about drone pilots?
The way pilots are using their drones is constantly changing. One very interesting indicator of drone pilot preferences is the recent shifts in drone insurance. Take for example the monthly amount pilots chose to pay for their insurance.
According to SkyWatch’s data, while the actual drone insurance rates didn’t change significantly, back in 2018, the average pilot decided to pay $31 a month for drone insurance. However, in 2019 pilots chose policies that cost $47 a month on average. In the following years, this number grew to $74 (2020), $96 (2021), and $104 in 2022.
There are a couple of reasons for this increase as Tomer Kashi, CEO of SkyWatch, tells us:
“The main driver behind this trend is that drone specialists are becoming more professional every year. Drone pilots today have better drones, more sophisticated equipment, and can do much more complicated operations. That means they have more expensive drones to insure, require wider coverage and need higher liability”.
The facts are supporting this claim, as the data shows us, the percentage of pilots who chose to insure their own drone (“hull damage”) is rising every year and got to 34% of all policies in 2022. Moreover, the average value of an insured drone went up by more than 30% from $2997 in 2018 to $4053 in 2022.
Drone models and equipment insurance trends
At the end of the day, drone insurance trends are affected by the general industry trends and above all - the heart of it – drones. Now, while the answer to “what is the best drone” is subjective, we can share with you what are the most commonly insured drones according to our data.
In the first place, we have the popular Mavic brand with more than 46% of insured drones. Second and third, according to SkyWatch customers, are DJI’s phantom brand with more than 17%, and Inspire brand which holds 7.5% of insured drones. The only non-DJI drone in the top 4 is Autel’s EVO which has a 3.7% of the drone insurance market, according to SkyWatch data. These trends can indicate the extent of popularity among these brands and the strong presence DJI still has in the general market.
Another interesting drone insurance industry trend to note is equipment. From battery stations to ultra-bright screens and cameras, more and more people invest in equipment and choose to insure it accordingly. In 2018, the percentage of clients that insured their drone equipment was 3.7%. Four years later, the number grew to 6.7% of commercial drone owners.
What’s next for the drone industry?
As the drone market grows, pilots are becoming more professional than ever. They require companies to compete for their spot with newer drones and equipment and are very aware of how important drone insurance is. The drone community has definitely benefited from these recent trends, enjoying more products and options. As always, we at SkyWatch.ai are keeping an eye on the market and are always curious to see what the new drone trends will be. We are looking forward to what is yet to come!