A study on drone insurance and its future potential in Malta

Abstract

This study analyses the current demand and viability of drone insurance in Malta. Drones are used for several purposes, some of which include photography, videography, inspections on construction sites and agricultural monitoring. Although drones are introducing many new job opportunities worldwide, one must also consider the insurance-related liabilities drones bring about with them.

The research was carried out using online questionnaires directed towards drone owners in Malta and interviews aimed at local insurance company representatives. The general findings result that drone owners agreed that drones bring about insurance-related liabilities and hence are willing to buy drone insurance, however this would depend on the annual premium charged. Representatives of local insurance companies emphasised that drone insurance in Malta is still not viable due to the small number of drone users in Malta. Selling drone insurance would result in high premiums reflecting the high risks being insured, which might not be affordable to drone owners.