Wisconsin P&C company gets drone approval

In an innovative step, this P&C firm has obtained FAA approval for testing the use of drones to enable quicker response to catastrophes

Insurance News

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By Michael P Tremoglie
 
American Family Insurance, Madison, WI, announced recently that it will begin testing this fall the use of unmanned aircraft systems – commonly referred to as drones – to accelerate its response to catastrophes. It received approval for the testing from the Federal Aviation Administration (FAA).

American Family is a leading property-casualty insurer in the Midwest. Its drone program targets situations where access to high-damage areas can be restricted for safety reasons for up to several days – for example last April when an EF-4 tornado ravaged the small community of Fairdale, Ill.
 
“When disasters strike, every moment counts when it comes to helping our customers recover,” said Paul Choi, claims national product director for American Family. “Drones could supply images to help us more quickly determine the extent of damage, providing information to deploy resources and prioritize our efforts on homes that are worst hit.”

Federal law requires FAA approval as it is currently prohibited to fly drones for commercial purposes. As of Aug. 2, the FAA had granted just over 1,000 exemptions for commercial use, including some to other insurance companies.

"In some situations, drones could provide us a true picture of what our customers are facing in a matter of hours, instead of days. That's huge when people are looking for information, help and hope," said Ryan Rist, American Family innovation director. "We're excited about the potential."

American Family Insurance is the nation's third-largest mutual property/casualty insurance company and ranks 358th on the Fortune 500 list. The company sells American Family-brand products, including auto, homeowners, life, business and farm/ranch insurance, through its exclusive agents in 19 states.
 

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