Explore Beneath the Blue Sky: Where the Low-Altitude Economy Meets Insurtech

1、 Introduction

Low altitude economy "is a comprehensive economic form that relies on low altitude airspace and is led by the general aviation industry, covering many industries such as low altitude flight, air tourism, regional passenger transport, general aviation services, scientific research and education. On a global scale, multiple subsystems jointly developed by the Federal Aviation Administration (FAA) and the National Aeronautics and Space Administration (NASA), such as Low Altitude Authorization and Notification Capability (LAANC) and Unmanned Aerial Vehicle Traffic Management (UTM), provide intelligent and efficient low altitude management services, enhancing flight safety and efficiency. Japan, on the other hand, has designed top-level plans through national institutions and implemented low altitude practical applications in multiple scenarios, optimizing the approval and regulatory processes for drones and improving the efficiency of low altitude flight approval. In recent years, with the continuous advancement of technology and policy support, the low altitude economy has gradually become a strategic emerging industry in the country, and has been included in government work reports, demonstrating its important position in national economic development. According to data from the Civil Aviation Administration of China, it is predicted that the market size of China's low altitude economy will reach 1.5 trillion yuan by 2025, and is expected to reach 3.5 trillion yuan by 2035.

2、 The impact of low altitude economy on the industrial chain

The low altitude economy has a strong driving force on the industrial chain, involving multiple aspects such as upstream manufacturing, downstream support, technological breakthroughs, job creation, public services, and consumption stimulation. In the field of public services, the application of low altitude economy will be further enhanced, such as emergency rescue, medical rescue, police security, etc. The rapid response capability of drones in natural disasters makes them an important tool for emergency rescue, which can quickly reach disaster areas for surveying and material transportation, improving rescue efficiency and coverage. In terms of medical rescue, drones are used to transport urgently needed medical supplies and equipment, especially in inconvenient transportation or emergency situations, significantly reducing response time. In police security, drones perform monitoring, patrol, and search and rescue tasks, improving the efficiency and effectiveness of public safety management. The low altitude economy has also given rise to emerging consumer scenarios, such as air travel and aviation sports. Low altitude aircraft bring new vitality to the tourism industry, allowing tourists to enjoy unique experiences such as aerial sightseeing and aerial photography through helicopters or drones, increasing tourism revenue. Aviation sports such as skydiving, paragliding, and drone racing have attracted a large number of sports enthusiasts and promoted the development of related industries.

3、 Low altitude economy and new quality productivity

The core of low altitude economy lies in technological innovation. From new materials, new energy and new models at the manufacturing end to high-tech means such as Beidou navigation, satellite Internet, 5G applications, big data, cloud computing and artificial intelligence at the service and support end, these technologies provide strong support for the development of low altitude economy. The application of Beidou Navigation System in precise positioning and navigation has improved the efficiency and safety of unmanned aerial vehicles in logistics and distribution. The high-speed network support of 5G technology enables drones to transmit large amounts of data in real-time, while big data and cloud computing provide powerful data analysis and processing capabilities for the operation and management of low altitude economies. Artificial intelligence has played an important role in the autonomous driving and intelligent scheduling of drones, enabling the low altitude economy to provide efficient and high-quality services, and promoting the transformation and upgrading of related industries.

The low altitude economy is in line with the development direction of new quality productivity, involving multiple aspects such as aircraft design, research and development, manufacturing, and operation, and is a high-tech and high value-added industry. Through technological iteration and expansion of application scenarios, low altitude economy can promote the research and innovation of new technologies and products, forming new quality productivity. It is widely used in the first, second, and third industries, and its complete industrial chain and strong radiation driving effect promote the development of related industries such as aviation logistics, aviation tourism, and aviation rescue, releasing huge industrial cluster effects and synergies, accelerating the formation of new quality production capacity. Air logistics utilizes drones for efficient cargo transportation, significantly improving logistics speed and efficiency; Air tourism provides unique travel experiences through low altitude aircraft, attracting a large number of tourists; Aviation rescue provides rapid response and rescue services in emergency situations, improving public safety levels.

In addition, the continuous improvement of regulatory policies also provides institutional guarantees for the development of low altitude economy. The government regulates low altitude flight activities by formulating and implementing a series of regulations and standards to ensure safety and order. The Interim Regulations on the Flight Management of Unmanned Aerial Vehicles issued by the Chinese government clarify the flight rules and safety requirements of unmanned aerial vehicles, providing a legal basis for their widespread application. These policy measures not only ensure the safety of low altitude flights, but also create a favorable environment for the healthy development of the industry.

4、 The Application of Insurance Technology in Low altitude Economy

In the low altitude economy, insurance innovation plays a crucial role. The traditional insurance model is unable to cope with new risks such as drones and flying cars, which has prompted insurance companies to develop innovative insurance products that are suitable for the low altitude economy. Drone insurance covers aspects such as aircraft damage, third-party liability, and pilot liability, utilizing big data and artificial intelligence technology to assess risks and improve the accuracy of risk prediction and claims efficiency. Big data analysis can integrate drone flight records, quantify operational risks, and develop reasonable insurance rates. The "Demonstration Clause for Third Party Liability Insurance for Unmanned Aerial Vehicles (Shenzhen Region)" released by Shenzhen is regarded as the prototype of the future "compulsory insurance" for unmanned aerial vehicles. The introduction of intelligent claims system makes the claims process faster and more efficient. The widespread application of drones in logistics, agriculture, emergency rescue and other fields has increased the insurance demand for specific scenarios and special needs. Through the "insurance+service" model, insurance companies not only provide property and liability protection, but also extend risk protection such as professional negligence, product quality defects, and network security, providing comprehensive risk management solutions for the healthy development of the low altitude economy. Through technological innovation and customized insurance products, insurance companies can better support the development of the low altitude economy, promote its application expansion in various industries, and ensure the stability and sustainable growth of emerging industries.

Existing issues

1. Risk assessment and pricing challenges

The low altitude economy involves a variety of industries and application scenarios, including drones, general aviation, air tourism, and logistics distribution. The risk characteristics of these emerging fields are complex and ever-changing. At present, insurance companies lack sufficient historical data and mature models in risk assessment and pricing, resulting in inaccurate pricing and affecting the competitiveness and market acceptance of insurance products.

2. Insufficient innovation in insurance products

The current low altitude economic insurance products in the market are relatively single and cannot fully meet the needs of different users. Mainly manifested in the narrow coverage of insurance products and the lack of segmented protection for specific scenarios and industries in the low altitude economy, resulting in users being unable to obtain comprehensive risk protection when facing complex and changing low altitude economic environments. The lag of existing insurance products makes it difficult to timely incorporate the risks of emerging business models into the scope of protection, further limiting users' demand and trust in insurance products.

3. Risk control technology is relatively lagging behind

The development of low altitude economy relies on high-tech means, but the application of risk control technology in this field in the insurance industry is relatively lagging behind. The main manifestation is that insurance companies lack real-time monitoring and data analysis capabilities for low altitude aircraft and related equipment, resulting in the inability to obtain accurate data support in risk assessment and claims processing. In addition, insurance companies also have insufficient channels to obtain data related to low altitude economy, lacking comprehensive and timely data collection and processing capabilities. Not only does it affect the risk control efficiency of insurance companies, but it also limits their ability to provide accurate and efficient protection services in the low altitude economy field, which hinders the coordinated development of the insurance industry and the low altitude economy.

The development direction of future low altitude economic insurance

With the continuous advancement of technology and the sustained support of policies, the low altitude economy and insurance technology will usher in a broader development space in the future. The low altitude economy will increasingly rely on intelligent and automated technologies, and the autonomous driving technology of drones will continue to mature. With the support of artificial intelligence, 5G networks, and big data analysis, autonomous flight and intelligent scheduling will be achieved, improving operational efficiency and safety. The application scenarios will also be further expanded, not only playing a role in traditional fields such as logistics, agriculture, and emergency rescue, but also showing great potential in emerging fields such as smart city construction, environmental monitoring, and energy inspection, promoting the intelligent level of urban management.

At the same time, insurance technology will usher in the era of data-driven precision insurance. The popularization of big data, Internet of Things, and artificial intelligence technologies enables insurance companies to more accurately assess risks and provide customized insurance products. Real time data from drones and other low altitude economic related equipment will be used for risk analysis and prediction, improving the accuracy and effectiveness of insurance products. Intelligent claims and service innovation will significantly improve claims efficiency, achieving automatic claims and reducing human intervention through blockchain technology and smart contracts.

In addition, the widespread application of regulatory technology (RegTech) will enhance the monitoring and management of low altitude flight activities, ensure the safety and order of low altitude economy, and promote the coordinated development of low altitude economy and insurance technology.

conclusion

The low altitude economy, as a strategic emerging industry of the country, demonstrates enormous market potential and development prospects. Through technological innovation and policy support, the low altitude economy can promote the transformation and upgrading of related industries, and drive high-quality economic development. As an important guarantee for the low altitude economy, the insurance industry needs to innovate products and services through technological means to meet the growing risk management needs of the low altitude economy. At the same time, the advancement of insurance technology will further improve the efficiency of risk assessment and claims, providing more accurate and efficient insurance solutions. The coordinated development of low altitude economy and insurance technology will jointly promote the stability and sustainable growth of emerging industries, and drive comprehensive economic progress.