Operators of small unmanned aircraft must carry third-party liability cover of $1.3m to $2.6m.

Staff Reporter

, Hong Kong

Operators of mini unmanned craft must transportation third-party liability screen of $1.3m to $2.6m.

Hong Kong’s insurance regulator said it is moving pinch insurers to support nan improvement of nan city’s low-altitude economy, arsenic nan wider usage of unmanned craft creates caller consequence guidance and security needs.

The Insurance Authority (HKIA) said connected 13 February it has been helping nan manufacture place opportunities to supply security screen for businesses, institutions and nan nationalist progressive successful low-altitude activities, pinch nan purpose of supporting a safe and unchangeable operating environment.

Under existent regulations, operators of mini unmanned craft are required to clasp third-party liability security covering bodily wounded aliases death.

The minimum sum assured ranges from $1.3m (HK$10m) to $2.6m (HK$20m), depending connected nan aircraft’s weight and operational consequence level.

The HKIA said much than 13 insurers presently connection specified products successful nan market.

The regulator is besides encouraging insurers to raise information consciousness amongst unmanned craft users and operators done merchandise creation and work improvements.

This includes nan usage of consequence assessments and differentiated underwriting, specified arsenic evaluating whether operations impact higher-risk activities for illustration flying beyond ocular statement of show aliases successful densely populated areas.

Premiums whitethorn besides bespeak factors specified arsenic nan operator’s training, attraction records and formation information management.

The HKIA said these practices are intended to fortify consequence guidance standards and support nan sustainable maturation of nan low-altitude economy.

It is besides urging insurers to make usage of information from nan government’s Low-Altitude Economy Regulatory Sandbox and nan enhanced Regulatory Sandbox X.

The information allows insurers to analyse unmanned craft operations nether different scenarios, helping amended pricing accuracy, underwriting and merchandise competitiveness.

A task unit group up by nan Hong Kong Federation of Insurers is utilizing nan sandbox information to study issues specified arsenic underwriting challenges successful analyzable operating environments, claims handling aft incidents and cross-border risks linked to operations beyond Hong Kong.

The HKIA said risks are expected to go much analyzable arsenic nan low-altitude system expands into areas specified arsenic larger unmanned aircraft, drone-based logistics, emergency services, aesculapian deliveries and, successful nan longer term, parented low-altitude transport.

It added that insurers tin play a bigger domiciled done merchandise innovation, cross-border practice and talent improvement to support nan sector’s semipermanent growth.

($1.00 = HK$7.82)

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