I’m thrilled to sit down with Simon Glairy, a leading authority in insurance and Insurtech, with deep expertise in risk management and AI-driven risk assessment. With the recent buzz around the Trump administration’s proposed rule changes for drone operations, Simon is the perfect person to help us unpack what this means for the aviation insurance industry, the growth of commercial drone services, and the broader implications for technology and regulation. In our conversation, we’ll explore the opportunities and challenges these changes bring, from expanding drone applications to navigating new risks in shared airspace, and how insurers are adapting to this rapidly evolving landscape.
How do you see the proposed rule changes for drone operations, particularly the allowance for flights beyond visual line of sight, shaping the future of the industry?
These changes are a game-changer for the drone industry. Allowing flights beyond visual line of sight removes a massive barrier that’s been holding back scalability. Until now, operators had to get special waivers, which was a slow and cumbersome process. This opens the door to more efficient operations, especially for things like delivery services, infrastructure inspections, and agricultural monitoring. It’s not just about flying further; it’s about enabling a level of automation and reach that can transform how businesses use drones. I think we’re looking at a significant leap toward mainstream adoption.
What new applications or services do you anticipate emerging as a result of these loosened restrictions?
The possibilities are exciting. In delivery, we’ll likely see rapid expansion of services for small packages—think medical supplies, food, or even retail goods in urban and rural areas alike. Beyond that, industries like energy could use drones for real-time monitoring of power lines over vast distances. Agriculture, which is already a growing sector, might lean into precision farming with drones collecting data on crops or spraying fertilizers. Even public safety could benefit, with drones aiding in search and rescue missions over large areas. These rules are essentially unlocking a wave of innovation we’ve only scratched the surface of.
How do you think these changes will influence the growth of commercial drone services in the US, especially for major players like Amazon and Walmart?
The impact on growth will be substantial. Companies like Amazon and Walmart have already been testing drone delivery in limited areas, and with these restrictions easing, they’re positioned to scale up fast. Amazon’s goal of delivering 500 million packages by drone annually by the end of the decade suddenly looks more achievable. Walmart’s plans to expand drone-enabled locations to metropolitan areas also get a big boost. These companies have the resources to navigate the remaining regulatory hoops and invest in the tech needed to make this work, so I expect them to lead the charge in normalizing drone delivery as a standard service.
What opportunities do these new rules create for smaller companies or startups in the drone space?
Smaller companies and startups stand to gain a lot, too. These rules level the playing field by reducing the need for costly, time-intensive waivers. Startups can now focus on niche markets or innovative use cases—like specialized agricultural drones or local delivery services—without the same regulatory burden. The key for them will be to carve out unique value propositions and partner with insurers or tech providers to manage risks and costs. It’s a chance to compete with the big players by being agile and targeted in their approach.
When Transportation Secretary Sean Duffy talks about ‘American drone dominance,’ what does that phrase mean to you in the context of global competition?
To me, it’s about positioning the US as a leader in both drone technology and regulatory frameworks on the world stage. It’s a bold statement that signals intent to outpace other countries in adoption and innovation. The US has strong tech companies and a massive market for drone services, but it’s been lagging behind places like Australia or parts of Europe in regulatory progress. This push is about catching up and setting a standard that others might follow. It’s not just about drones flying; it’s about owning the future of autonomous aviation and the economic benefits that come with it.
From an insurance perspective, what are some of the biggest challenges in covering drone operations under these new rules?
Insurance for drones is a whole new frontier, and these rules amplify the challenges. One major issue is assessing risk in shared airspace—drones operating near manned aircraft introduce complex liability questions. There’s also the sheer volume of potential claims as drone usage scales up; insurers need to price policies in a way that’s sustainable. On top of that, the rapid pace of tech advancement means underwriters are often playing catch-up with new risks. It’s a balancing act between encouraging innovation and managing exposure to loss.
Cybersecurity is often mentioned as a concern for drone operations. Can you dive into why this is such a critical issue for insurers?
Absolutely. As drones become more autonomous and connected, they’re increasingly vulnerable to hacking or data breaches. A compromised drone could be diverted, crash, or even be used maliciously, posing risks to property, people, and privacy. For insurers, this means evaluating not just physical damage but also digital vulnerabilities—things like software integrity and network security. Underwriters have to ask tough questions about how operators protect their systems and what happens if there’s a breach. It’s an area where technical expertise is non-negotiable, and it’s only going to grow as a concern.
Agriculture seems to be a growing focus for drone insurance. What’s driving this trend, and why is this sector so significant?
Agriculture is becoming a hotspot because drones offer incredible value in this space. They’re used for crop monitoring, soil analysis, pesticide application, and even livestock tracking—tasks that save time and boost efficiency. As farmers adopt this tech, the demand for insurance grows to cover equipment loss, third-party damage, or operational failures. What makes this sector unique is the mix of rural environments and high-value assets at stake, like crops or machinery. Insurers see it as a market with steady growth potential, especially as precision farming becomes the norm.
Underwriting drones requires deep technical knowledge. Can you elaborate on what that means for insurers stepping into this space?
It means insurers can’t just apply traditional aviation models to drones—they need to understand the nuts and bolts of the technology. That includes knowing how drone software handles fail-safes, how calibration impacts performance, and what happens if communication is lost mid-flight. Underwriters also have to grasp regulatory nuances, like flight plan requirements or altitude caps, to assess compliance risks. It’s a steep learning curve, and insurers who don’t invest in that expertise risk mispricing policies or missing critical exposures. It’s about blending tech savvy with risk management.
Looking ahead, what is your forecast for the future of drone technology and its impact on the insurance industry?
I’m optimistic but cautious. Drone technology is on track to become ubiquitous in the next decade, with applications touching nearly every industry, from logistics to public safety. For insurance, this means a massive new market, but also a need to evolve quickly. We’ll see more tailored policies, likely leveraging AI to assess risks in real time, and a push for standardized coverage as fleets grow. The challenge will be balancing innovation with safety—both physical and digital. If insurers and regulators can keep pace, I think we’re looking at a future where drones redefine not just transportation, but how we manage risk itself.
