unmanned aircraft systems (uas) the future of drones
TRANSCRIPT
Unmanned Aircraft Systems (UAS)
THE FUTURE OF DRONES
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A New American Pastime?
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Our Discussion Today
Some UAS Statistics
What is an Unmanned Aircraft System
Current Regulatory Scheme in United States
Commercial Uses – Applications in Key Industries
Insurance and Underwriting Issues
The Future/ Conclusions
Questions?
Some UAS Statistics
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The Buzz Overhead
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Commercial Uses By Industry (Section 333 Exemptions)
Industry Number Percent of Total
Exemptions
Photo/ Film 477 47.7%
Real Estate 289 28.9%
Utilities/ Energy/ Infrastructure 234 23.4%
Agriculture 202 20.2%
Construction 171 17.1%
Emergency Service 77 7.7%
Education 59 5.9%
Manufacturer 40 4.0%
Government Contracting 30 3.0%
Insurance 30 3.0%
Conservation 27 2.7%
Scientific Studies 18 1.8%
Other 15 1.5%
TOTAL 1,000
Data from Center for the Study of Drones at Bard College. As of 7/31/2015
What is an Unmanned Aircraft System? Terms and Definitions
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Unmanned Aircraft Systems (UAS)
An unmanned aircraft system (UAS) = unmanned *aircraft
that can fly autonomously and does not have a pilot
onboard.
(*including the operating systems, controls)
In this context - small UAS (under 55 pounds)
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An aircraft by many names…
A few commonly used alternatives to the term DRONE…
– UA – Unmanned Aircraft– UAV – Unmanned/Unpiloted Aerial Vehicle– UAS – Unmanned Aircraft System – Next Slide– RPV – Remotely Piloted Vehicle– RPA – Remotely Piloted Aircraft– OPA – Optionally Piloted Aircraft– ROV – Remotely Operated Vehicle– RPAS – Remotely Piloted Aircraft System
For the purposes of the aviation insurance product these are all essentially the same thing.
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The Components of anUnmanned Aircraft System
The UA or UAV is only one part of the operation/risk.
The “System” includes some/all of the following:– Unmanned Aircraft
• The air vehicle itself
– Payload• The business end of the system
• The systems that collect or transmit data
– Mission Support Equipment • Equipment needed to transport, maintain, launch, and recover the UA
– The People• The pilot/operator, visual observer, payload operator, etc.
– Data Link• The communications between the ground and UA
– The Space• Airspace, Air Traffic Control, Weather, and Regulations applicable to a
given flight
– Command and Control• Internal/External
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DJI - UAS Specs
Phantom 2V+ (no longer in production)
Inspire 1 Weight (Battery Included) 6.47057 lbs Max Ascent Speed 5 m/s Max Descent Speed 4 m/s Max Speed 22 m/s (ATTI mode, no wind) Max Flight Altitude 4500 m (14,763.8 ft) Max Wind Speed Resistance 10 m/s Max Flight Time Approx. 18 minutes
Current Regulatory Scheme
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Classifying the Flight
FAA classifies use of UAS in the national airspace as:
A. Public (Non-Military)B. Civil (Commercial)C. Hobbyist (Model Aircraft)
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Federal Framework (in general)
500ft, airplanes (rural)
400ft UAS (current)
83ft, private landowner
Graphic (modified), curtesy of The Wall Street Journal
restricted
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Public Use
Examples of Government agencies and organizations: State, County, or City governments, Fire Departments, Police Departments, Public Universities.
For public aircraft operations, the FAA issues a Certificate of Waiver or Authorization (COA) that permits public agencies and organizations to operate a particular aircraft, for a particular purpose, in a particular area. The COA allows an operator to use a defined block of airspace and includes special safety provisions unique to the proposed operation. COAs usually are issued for a specific period – up to two years in many cases.
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Civil Use (aka Commercial)
Any operation that does not meet the statutory criteria for a public aircraft operation is considered a civil aircraft operation and must be conducted in accordance with all FAA regulations applicable to the operation.
There are presently two methods of gaining FAA authorization to fly civil (non-governmental):
– Section 333 Exemption – Special Airworthiness Certificate
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Civil Use
• Section 333 Exemption – a grant of exemption in accordance with Section 333 AND a civil Certificate of Waiver or Authorization (COA); this process may be used to perform commercial operations in low-risk, controlled environments.
• “Blanket” COAs have been issued since March, 2015
• “Plan of Activities” must be filed within 3 days of flight
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Civil Use
• Special Airworthiness Certificate (SAC) : applicants must be able to describe how their system is designed, constructed, and manufactured, including engineering processes, software development and control, configuration management, and quality assurance procedures used, along with how and where they intend to fly. (this seems to be done more with certain kinds of aircraft-like experimental or test).
• The Exemption process is very involved, but the FAA has gradually relaxed the application/approval process.
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The “Fine Line” Between Civil and Hobbyist Classifications
Do I need a Section 333 grant of exemption if I'm not charging for my services?
A. Unless you are flying only for hobby or recreational purposes, you will need FAA authorization via a Section 333 grant of exemption to fly your unmanned aircraft system (UAS) for your business. This applies even if you are only flying to supplement or aide your business and not charging fees for doing so.
This according to the FAA.
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Hobbyist -or- Civil Use (Commercial)?
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Federal Framework
• FAA’s Notice of Proposed Rulemaking (announced February 15, 2015): a framework of regulations that would allow routine use of certain small UAS (under 55 pounds) conducting non-recreational operations (aka – Commercial Use of Drones).
• The new rules would not apply to model aircraft. Model aircraft operators must continue to comply with existing rules.
• Comment period has ended. 4,585 comments were received. (an example of one is included in your packet)
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Civil Use
This is very general illustration. Criteria is summarized in your handout entitled “Overview of Small UAS Notice of Proposed Rulemaking”
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The “Amazon Proposal” for sUAS use
Some Commercial Applications
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Agriculture
Increased Production, Yields
Maximize Resources
Cost Efficient
Increased Data Points
Advantages Precision Chemical & Water Application
Land Monitoring/Surveying
Crop Imaging
Vegetation Mapping
Livestock Monitoring
Usage
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Construction & Infrastructure
Cost Efficient
Accessibility
Decreased Risks to Staff, Equipment
Accurate Data Points
Infrared technology
Advantages Pipeline Monitoring
Bridge and Infrastructure Inspections
Smoke Stack Inspections
Power line inspections
Usage
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Weather Monitoring
Advantages
Cost Efficient
Less Human Exposure
Reduced Risk
Usage
Collect Data from Dangerous and Remote Areas
Improve Forecast Accuracy
New Data Information about Storm Changes
Surveying and Mapping
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Media and Entertainment Filming
Expands Creative Filmmaking
Time and Cost Efficient
Increased Safety
Advantages Improved Action Filming
Lower Overhead Shots
Increased quality of Videos/Images
Usage
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Public Safety and Law Enforcement
Accelerated Response Time
Improve Situational Awareness
Diminish Human Error
Cost Efficient
Advantages
Search-and-Rescue Missions
Crime Investigation
Surveillance
Bomb Squad, Hostage Response
Shoreline, Coastal Surveillance
Traffic Management
Usage
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Research and GIS
Time and Cost Efficient
Worker Safety
Clearer Images
Improved Accuracy
Mitigates Weather Delays
Advantages
Data Collection
3D Mapping
Remote Sensing
Flood Maps
Wildlife Conservation / Science
Usage
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Insurance and/or Claims
Reduce Fraudulent Claims (eg. Agriculture, WC)
Time and Cost Efficient
Lessen Human Error
Improve Customer Experience
Safety – Accessibility to Damaged Areas
Advantages
Usage Collect Images of Losses
Infrared technology detects leaks
Gather Information on a Location before Insuring or prior to onsite inspection
Other Risk Engineering or Modeling
Insurance Issues
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A Few “Insurance” Issues
UAS = Aircraft (Federal Aviation Administration vs. Raphael Pirker, decided
11/18/2014)
“Aircraft” Exclusion in CGL
Scheduled UAS & Equipment
Scheduled Operators (training and knowledge are critical)
Physical loss to hull, payload, parts, etc.
Third Party Liability– Typical Exclusions: Terrorism, War or Hostile Acts; Unlawful Use,
Nuclear, Asbestos, Pollution, Privacy
Coverage Sublimits
Terrorism is a “buyback” and needs specific consideration
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Underwriting Considerations
Almost all aviation underwriting stems from four basic points of risk analysis.– Operator experience– Make and model information– Purpose of Use– Location of Operations
Values and limits required– Aircraft– Payload– Ground Equipment
Operational procedures/risk mitigation items
Training
UAS underwriting is based on traditional aircraft underwriting foundation
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Risk Examples: Commercial & Private Uses
Collision with power lines
Collision with large aircraft
Collision with motor vehicles
Disruption with other safety or rescue operations
Spectator or Bystander injuries (eg. at events, public spaces)
Other property damage
Terrorism or hostile acts (malicious, unauthorized use)
Privacy (Data Storage, Data Retention)
The Futurefrom deceptive to disruptive
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On the Radar – What’s Next
Continued Technology Advances, Decreased Costs
Growth in Precision Agriculture, Emergency Management Services
Drone Deliveries
Increased State regulatory intervention: Privacy v. Security Debate
Monitoring and creation of “Best Practices” for service and maintenance records
Questions?
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Additional Resources
www.faa.gov/uas - Federal Aviation Administration, UAS section
http://knowbeforeyoufly.org/ - “Know Before You Fly” - AUVSI, AMA & Small UAV Coalition in conjunction with the FAA
http://www.auvsi.org/home - Association for Unmanned Vehicle Systems International
http://www.ncsl.org/research/transportation/current-unmanned-aircraft-state-law-landscape.aspx - National Conference of State Legislatures, Current Unmanned Aircraft State Law Landscape
http://www.aig.com/unmanned-aircraft_3171_659651.html
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Disclaimer
Certain statements provided herein are based solely on the opinions of AIG and are being provided for general information purposes only. Any opinions provided on economic trends should not be relied upon for investment decisions and are solely the opinion of AIG.
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