APCIA Responds to Misleading Wall Street Journal Article on Insurers’ Use of Drones

Dear Editor,

With a headline bent towards sensationalism, the recent Wall Street Journal article "Insurers Are Spying on Your Home From the Sky" wrongly suggests that insurers are inappropriately using drones with their customers. Insurers follow all terms in their contract along with all local, state, and federal laws related to the use of drones and customer privacy. The article fails to provide enough context on the important role remote viewing technologies play in preventing losses, accurately underwriting risk, and quickly processing claims.

Drones and similar technologies help insurers work with customers to identify safety risks, like roof damage or overhanging tree limbs, which can reduce the potential for damage from natural disasters. Drones are now doing what human inspectors previously did, but in a manner that is much safer, less obtrusive, and more cost effective than having someone climb onto your roof.

Drones are also critical to natural disaster recovery efforts. Drones enable claims adjusters to quickly survey for damages after a natural disaster, which speeds up the claims process and helps homeowners recover and rebuild faster.

For 2023, ratings agency S&P predicts homeowners insurers will have a nearly 12 percent net underwriting loss. This is not sustainable, which is why insurers are trying to help their policyholders reduce risk and prevent future claims. As industry losses hit record breaking levels, increasing the resiliency of homes and reducing losses is critical to addressing the challenges many policyholders face with the affordability and availability of insurance. Modern technology tools can be part of the solution.

David A. Sampson
President & CEO
American Property Casualty Insurance Association
55 12^th Street, NW., Suite 550
Washington DC., 20004