Unmanned Drones Now Have "Compulsory Insurance," First Policy Already in Place! Insurance Companies Rush into Low-Altitude Insurance Market, Over 40 Companies Have Launched Around 180 Products

Our country’s mandatory liability insurance in the low-altitude economy sector has achieved a “zero breakthrough.”

Recently, PICC Property and Casualty Insurance jointly issued the first policy for the pilot implementation of mandatory drone liability insurance in Chongqing, providing 42.6 million yuan in risk coverage for 194 drones operated by China Aerospace Science and Technology Corporation’s Aerospace Era Low-Altitude Technology Company. This marks the official establishment of the nation’s first mandatory liability insurance mechanism in the low-altitude economy sector in Chongqing.

Reinsurance Research Institute estimates that the low-altitude insurance market could reach 8 to 10 billion yuan by 2035. Currently, most property insurance companies have entered the low-altitude insurance field. According to the “Property Insurance Company Filing Product Directory” on the website of the China Banking and Insurance Regulatory Commission, there are about 180 insurance products related to the low-altitude economy/unmanned aerial vehicles/drones, involving over 40 property insurance companies.

However, industry insiders believe that the low-altitude insurance sector still faces challenges such as limited product offerings. Most products focus on traditional third-party liability and aircraft damage insurance, with insufficient coverage for emerging risks like R&D testing, cybersecurity, and professional liability. How insurance companies can innovate products and services to tap into the potential of the low-altitude insurance market will be a key focus in the future.

Preliminary establishment of mandatory drone liability insurance system by 2027

In February this year, the National Development and Reform Commission, the China Banking and Insurance Regulatory Commission, and the Civil Aviation Administration of China issued the “Implementation Opinions on Promoting High-Quality Development of Low-Altitude Insurance” (hereinafter referred to as the “Implementation Opinions”), proposing that “by 2027, a preliminary mandatory drone liability insurance system will be established.”

Yuan Shuai, Deputy Director of the Investment Department of the China Urban Development Research Institute and co-founder of New Wisdom Group’s New Quality Productivity Salon, told our reporter that the “Implementation Opinions” construct a framework for a low-altitude insurance system guided by policy, enforced by mandates, and covering the entire chain. It is the first time that drone liability insurance has been included in the scope of mandatory insurance. By linking insurance with flight approval as a pre-approval process, the system aims to improve the safety and control framework from the source, addressing industry pain points such as difficulty in claims and unclear liability in drone accidents.

He believes this not only fills the policy gap in low-altitude insurance but also activates the service capacity of the insurance market through institutional design, promoting coordinated progress in safety management and industrial development.

Recently, PICC Property and Casualty Insurance, as the lead underwriter of the low-altitude economy co-insurance group, jointly issued the first policy for the pilot implementation of mandatory drone liability insurance in Chongqing with 18 other insurance institutions.

The “Chongqing Unmanned Aerial Vehicle Third-Party Liability Insurance” is a tailored insurance product designed specifically for Chongqing’s “megacity + mountain features” low-altitude operation scenarios. The product was successfully filed on March 12, with innovative clauses covering risks unique to low-altitude flight such as aerial collisions, operational errors, severe weather, communication loss, and spraying or dropping operations. It aims to solve the longstanding issues of inconsistent policy terms and imprecise coverage in low-altitude insurance, building a detailed and professional risk protection system.

PICC Property and Casualty stated that, based on the “Chongqing experience” of liability insurance, it will provide replicable and promotable references for establishing a nationwide mandatory low-altitude economy liability insurance system, fully supporting the high-quality development of the low-altitude economy.

Active industry deployment: over 40 insurers have launched about 180 products

Currently, many property insurance companies have entered the low-altitude insurance field, with some leading firms developing a series of insurance solutions.

It is reported that PICC Property and Casualty has systematically laid out related services since 2024, establishing a coverage system for general aircraft, unmanned aerial vehicles, and electric vertical takeoff and landing (eVTOL) aircraft. They have innovated and developed 15 insurance products, forming an initial matrix covering the entire low-altitude industry chain, including R&D, manufacturing, testing, commercial operation, and maintenance. By 2025, nearly 350 billion yuan in risk coverage has been provided for the low-altitude industry chain.

Ping An Property & Casualty’s Deputy Party Secretary and Chairman of the Supervisory Board, Shi Hequn, stated that the company has built a comprehensive insurance product matrix covering the full lifecycle of drone R&D, manufacturing, and operation. He noted that the rapid development of the low-altitude economy demands higher underwriting, pricing, and claims capabilities from insurers. The company will collaborate with industry peers, reinsurance partners, and drone enterprises to explore suitable insurance solutions for China’s low-altitude economy.

Zhongan Insurance officials said that the company leverages financial technology to deepen its involvement in low-altitude insurance, partnering with leading global drone manufacturers to create a series of insurance solutions based on drone scenarios, supporting the development of the low-altitude economy.

A review of the “Property Insurance Company Filing Product Directory” on the website of the China Banking and Insurance Regulatory Commission shows about 180 insurance products related to the low-altitude economy/unmanned aerial vehicles/drones, involving over 40 property insurance companies, with PICC, China Life Property & Casualty, JD Allianz, and others offering the most products, mainly third-party liability and aircraft damage insurance.

The “Implementation Opinions” also propose guiding insurance companies to proactively adapt to the development trend of the low-altitude economy, gradually establishing a full industry chain insurance product system covering R&D, manufacturing, flight operations, and infrastructure. It encourages product development and service innovation for new risks such as flight safety, technical safety, cybersecurity, environmental and facility safety, and human operational safety. It also emphasizes increasing supply of insurance for medium and large unmanned aircraft and further optimizing traditional manned aircraft insurance, aiming to form a comprehensive, efficient protection system.

Industry explores precise pricing: how to address the lack of historical data?

Low-altitude insurance falls under the category of technology insurance, with core pricing challenges stemming from rapid technological iteration, short commercialization cycles, and a lack of historical loss data.

“In recent years, the low-altitude economy has accelerated integration into agriculture and rural areas, with agricultural drone applications greatly improving operational efficiency,” said a senior executive at Zhongan Insurance. Regarding the development of insurance for agricultural drones, the company has faced difficulties in precise pricing. On one hand, insufficient historical data makes actuarial modeling difficult; on the other, significant differences in operational environments and pilot information affect fairness when using uniform pricing.

“To solve these issues, the company sets differentiated deductibles for different drone models to reduce small-claim expenses, and incorporates factors such as drone usage time and accident history into pricing to achieve personalized quotes, lowering premiums for ordinary users,” the executive explained.

Gao Chengyuan, an expert advisor at the Low-Altitude Economy Branch of the China Association for Science and Technology, pointed out that the main pain points currently are: first, data gaps—flight operation data and risk data are scattered among various entities, and insurers lack precise loss databases and risk control models, leading to reluctance to insure; second, lack of standards—new aircraft like eVTOL have ambiguous liability definitions, opaque maintenance pricing, and high professional thresholds for claims and liability determination; third, limited supply—most products focus on traditional third-party liability and aircraft damage, with insufficient coverage for emerging risks like R&D testing, cybersecurity, and professional liability.

Gao Chengyuan suggested establishing an industry-level data sharing platform, connecting insurance information with low-altitude intelligent network systems; accelerating the formulation of scenario-specific clauses and damage assessment standards; encouraging co-insurance, reinsurance, and other mechanisms to diversify risk, and supporting insurers and industry leaders to jointly build “risk laboratories” to shift from loss compensation to risk reduction services.

Industry experts believe that in the future, insurers need to leverage data sharing, AI applications, product innovation, and risk diversification to achieve breakthroughs—ensuring the development of the low-altitude industry while maintaining sustainable insurance business growth.