ADM wins approval to use drones to collect crop insurance data
Archer Daniels Midland Co. (ADM), a food processing and commodities provider that offers insurance coverage through captives, may soon begin using drones to investigate crop insurance claims. The ADM Crop Risk Services branch has won approval to use drones for such a purpose from the Federal Aviation Administration. This approval makes ADM one of the very few companies in the insurance industry that has managed to receive approval from the Federal Aviation Administration to use drones for a commercial purpose.
Drones may be useful in gathering data concerning crop damage
Drones are gaining more popularity in the insurance industry, as they could be used to investigate the damage caused to property by a natural disaster. When it comes to crop insurance, these unmanned aerial vehicles may be able to collect information more quickly than conventional investigatory methods. The ability to collect information quickly could be a major benefit for the insurance industry as it will provide insurers with the ability to process claims more quickly.
_________________________Random Quotes to Remember ~ “The best investment is in the tools of one’s own trade.” – Benjamin Franklin
FAA dictates the commercial use of drones throughout the United States
The Federal Aviation Administration introduced new rules that govern the commercial use of drones in February of this year. Regulations that govern these rules may not be in place for several years, however, which leaves the commercial use of drones in a relatively grey area. Companies that want to use these unmanned vehicles commercially must receive approval from the federal agency before they can do so.
Drones will be used to investigate damage done to crops by natural disasters
ADM intends to used Phantom 2 Vision drones that are made by Shenzhen, a Chinese company. These drones cost approximately $900 per unit and will be able to collect information concerning crop damage. Crops can be damaged by numerous types of event, such as hail, flooding, and strong winds. Being able to collect data concerning the damage done to crops will help ADM better process crop insurance claims, providing better services to the company’s policyholders.