Del. Insurance Commissioner addresses drone usage by insurers

DOVER, Del. – The Delaware Department of Insurance has issued a bulletin to carriers regarding the increased use of drones and aerial imagery in industry activities.

Insurance Commissioner Trinidad Navarro says insurers have adopted aerial photography to improve the efficiency of claim processing, loss assessments, and underwriting by reducing costs associated with traditional inspections. He adds that insurers must balance these innovations with a commitment to fair consumer treatment, regulatory compliance, and ethical standards, and aerial imagery must be used transparently.

Aerial imagery is useful but has some limitations, such as the potential for image distortion and the inability to identify fine details. Additionally, light and weather interference can be an issue.

“Insurance is an ever-changing industry, but change has accelerated at an extreme rate in recent years. Much like our recent AI guidance, this bulletin does not aim to prohibit use of new technology that may offer cost and consumer benefits. Instead, it sets forward clear guidance as to how carriers are to safeguard consumers, prevent unfair business practices, and ensure underwriting decisions are made with appropriate evidence and are not solely based on the cosmetic factors of a property,” Insurance Commissioner Trinidad Navarro explained.