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

Innovation Project Summary Cookhouse Lab

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

TORONTO

2017

5

MEMBERS

1

MVP

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

PROSUMER

INSURER

UNDERWRITER

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?

The problem visualized! Insurance market with a roughly substantiated one-size-fits-all risk price, but avoid tail risk issues.

SOLUTION

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

1

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.

2

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 solution 02

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.

DroneData

New Data Acquisition

increase
underwriters access to policyholder flight data and behaviour

costefficiet

Proper Margins

accuracy
change proper premiums while allowing for usage based discount pricing

customerdata

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

PARTICIPANTS

We also offer intro sessions that provide insurance professionals with the opportunity to experience our Cookhouse Labs methodology and a sneak peek at what it’s like to co-create and collaborate with our global community. If you are not a Cookhouse Labs member and are interested in finding out more, check out our membership benefits!

Drone Insurance: Learnings & Wrap Up

The Cookhouse Lab Drone Insurance project launched on Monday 31 July. The purpose of this four-week project was to identify how to best insure drones, given that there is currently a lack of data which is preventing insurers from being able to launch products tailored to the risk requirements of individual drone users. In Weeks 1 and 2 of the project, the team focussed on developing their user personas for recreational and commercial users. The team investigated ways in which to engage consumers and prosumers, focussing on community participation. Students from the University of Applied Sciences Würzburg-Schweinfurt (Germany) worked alongside the team and shared their risk model, enabling the team to identify and develop a prototype for an on-line, on-demand drone insurance solution.

(Photo taken with the drone of our Innovation Chef, Jason Yu)

In Weeks 3 and 4, the team conducted secondary market research to support their recommendations. To assess market appetite for drone insurance, and to assess the willingness of consumers to share their drone data that could enable an on-demand type product, the team also developed a customer survey which was launched in partnership with OmniView Tech. During the final week of the project, the team collated their survey results and completed their Final Presentation and Innovation report.

Accomplishments to Date

  • Conducted coffee shop interviews to understand the public perception and knowledge of drones.
  • Built personas for target drone users.
  • Defined problem statement.
  • Established a front-end solution based on the risk model developed by the students from the University of Applied Sciences Würzburg-Schweinfurt.
  • Visited Omniview Tech (drone and drone accessories retailer) to gain insights into the drone market.
  • Drone flying trip to Scarborough Bluffs with external drone users.
  • Developed concept and wireframes for a data-based community solution and an on-demand drone insurance product application.
  • Surveyed “prosumer” drone group in partnership with OmniView Tech to establish the propensity of drone users to purchase insurance, and to share their data.
  • Finalised the Innovation Report and Presentation

Participants

  • The Cooperators
  • Munich Re
  • JAUNTIN’
  • Besurance

Guest Speakers

  • Hybris (SAP)
  • University of Applied Sciences Würzburg-Schweinfurt

Want more? Make sure to check out the project Management Report!

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