IMUA Presentation Jim Loveland, Founder & CEO - IMUA.org

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IMUA Presentation Jim Loveland, Founder & CEO - IMUA.org
IMUA Presentation
Jim Loveland, Founder & CEO
IMUA Presentation Jim Loveland, Founder & CEO - IMUA.org
A Bit About Me

 30
 YEARS
 LEADING INSURANCE
 TECHNOLOGY
 COMPANIES
IMUA Presentation Jim Loveland, Founder & CEO - IMUA.org
Current State of Drone /
UAS Utilization
• 760,000+ hobbyists
  have registered more
  than 1.6 million drones
  since Dec. 21st, 2015

• The FAA estimates that
  hobbyists will buy 2.3
  million drones in 2017
  and 13 million by the
  end of 2020
IMUA Presentation Jim Loveland, Founder & CEO - IMUA.org
Current State of Drone /
UAS Utilization
• Since April 2016, more than 44,000 commercial sUAS
  licenses have been registered with the FAA (an average of
  1,000 new commercial drone licenses per week)

• FAA forecasts that the U.S. commercial drone fleet will grow
  10X by 2021 - with a forecast of 420,000 commercial UAS
  registered by that year.

• About 7,000 pilot planes fly in U.S. airspace on any given
  day and the FAA has a total of 320,000 piloted aircraft
  registered in its database
IMUA Presentation Jim Loveland, Founder & CEO - IMUA.org
Four Trends Are Driving Drone / UAS
Adoption

1 2 3 4      technology
regulation                  value is     needs are
                  is
 is easing                increasing   becoming real
              improving
IMUA Presentation Jim Loveland, Founder & CEO - IMUA.org
1 2 3 4      technology
regulation                  value is     needs are
                  is
 is easing                increasing   becoming real
              improving
IMUA Presentation Jim Loveland, Founder & CEO - IMUA.org
Evolution of Drone Regulation

 PRE-2012                   JAN 2012                   AUG 2016                    2017+
 Effective Moratorium on    Section 333 of the FMRA    Small UAS Rule (Part 107)   Amendments to Part 107
 Commercial Drone Flights   of 2012 Goes Into Effect   Goes Into Effect            / New Regulation

     PRE-333 EXEMPTIONS         PART 333 EXEMPTIONS             PART 107                FUTURE OUTLOOK

 EFFECTIVELY NO             COMMERCIAL UAS             UAS FLIGHTS                 700K+ UASes
 COMMERCIAL UAS             POSSIBLE—BUT               FEASIBLE AND                REGISTERED WITH
 FLIGHTS                    CUMBERSOME                 INDIVIDUAL UAS              FAA
                                                       LICENSES ISSUED
IMUA Presentation Jim Loveland, Founder & CEO - IMUA.org
What’s Allowed With Part 107
                Ability to fly drones commercially

                Can fly in daylight or twilight hours

                Must maintain VLOS at all times

                Fly, with approval, in all airspaces

                2 Year license to operate commercially
IMUA Presentation Jim Loveland, Founder & CEO - IMUA.org
What’s Prohibited With Part 107
                Beyond visual line of sight (VLOS)

                Night operations

                Operations over crowds

                UAS + payload cannot exceed 55lbs

                Cannot operate from a moving vehicle
IMUA Presentation Jim Loveland, Founder & CEO - IMUA.org
Operations Over Crowds Easing
               FAA evaluating practical risk of drones
               operating above people
               Currently, CNN is the only organization with
               an exemption
               Initial studies suggest the risk is much
               lower than initially though
               FAA’s Notice of Proposed Rule Making
               regarding operations expected soon
Beyond VLOS
              Still one of the most technologically
              complex challenges to solve
              Large players like Amazon are pushing both
              the technology and the regulation
              While everyday delivery is top of mind—
              delivery of medical supplies is often the
              most compelling use case
Proximity To Airports
                No operations within 5 miles of an airport
                FAA approval required
                Previously, there was an online request
                process that took up to 90-days to get
                approved

                For Class D airspace, towers are now
                providing approvals directly
UTMS Explained
Where Regulation Is Going
               Routine operations close to airports &
               controlled airspace
               BVLOS and Night Operations becoming
               common
               UTM-Based Traffic Management will
               automate complex airspace
               Continued Streamlining of Part 107
               Certification
1 2 3 4      technology
regulation                  value is     needs are
                  is
 is easing                increasing   becoming real
              improving
State of the Technology Scorecard
                                OUTSTANDING                                                 LIMITED
                                LOW COST FOR REQUIRED PERFORMANCE   HIGH COST FOR REQUIRED PERFORMANCE

FLIGHT CONTROL                                                                                           SURPASS NEED

NAVIGATION                                                                                                ADEQUATE

DRONE ENDURANCE                                                                                           ADEQUATE

OBSTACLE AVOIDANCE                                                                                        ADEQUATE

PROGAMMABILITY                                                                                           SURPASS NEED

ON BOARD PROCESSING                                                                                        LIMITED

PRIMARY SENSOR / UNDERWRITING                                                                            SURPASS NEED

PRIMARY SENSORS / CLAIMS                                                                                  ADEQUATE
Example: Resolution
Where Technology Is Going

               Precise navigation & indoor flight
               Better data capture including multi-
               spectral, Lidar, thermal and more
               Increased platform performance &
               longer endurance,
               Smaller, less expensive platforms
1 2 3 4      technology
regulation                  value is     needs are
                  is
 is easing                increasing   becoming real
              improving
A BRIEF HISTORY OF
(DRONE) TIME

      1998          2002                            2010                    2013                2015     2016             2017

                                                           2-Axis Gimbals

                                 HD HERO
                                 1080P Resolution

                                                                                                                   4K

GLOBAL HAWK       SCAN EAGLE                        Hawkeye Mark 3                                                 Resolution

                                                                     $25K / UNIT
   $222M / UNIT   $100K / UNIT
                                                                                                   Sense & Avoid                 20MP
                                                                               3-Axis Gimbals
                                                                                                                                 Resolution

                                                                                                        Phantom 4
                                                                                                              Pro
                                                                                                            $1,200 / UNIT
Where Drone Value Is Going

               Exotic sensors will become
               commonplace (thermal,
               hyperspectral)
               Overall cost of platforms will
               continue to drop
               Drone as a service models will
               become commonplace
1 2 3 4      technology
regulation                  value is     needs are
                  is
 is easing                increasing   becoming real
              improving
Crop Monitoring / Spot Treatment
Surveying & Terrain Modeling
Wind Turbine Inspections
Oil & Gas Inspections
Accident Investigation
The Case for Inland Marine
Warehouse Inspections
Construction Monitoring
Claims Investigations
Security & Monitoring
CONCLUSION:

 A perfect storm of regulation, technology,
cost/value and industry need is resulting in
 staggering drone adoption—don’t get left
                  behind.

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