ABSTRACT
The exponential growth in the use and deployment of drones globally and of the technology underpinning their scope and operation dictates that the regulatory framework and associated security and commercial arrangements such as insurance will continue to evolve.
It is generally accepted that one of the key challenges facing regulators globally in fully realising the potential of drones is their successful integration into the non-segregated airspace without reducing existing capacity and while maintaining safety levels currently imposed and minimising potential dangers to other aircraft, passengers and other persons and property on the ground. Organisations such as the International Civil Aviation Organisation (ICAO) and the European Union Aviation Safety Agency (EASA) have vital roles to play in this regard and more broadly.
At a national level, especially within federal jurisdictions, the interplay between national, state and local (council, local authority or municipal) laws can make for a complex interaction. For the sake of consistency and certainty, aviation law is generally within the sole remit of the national government but, unlike traditional aviation, drones do not solely operate along agreed flight paths, from specified aerodromes, and even operate under the surface of the sea. While a national government is in the best position to establish uniform regulatory requirements within any jurisdiction, it lacks the manpower and local presence to comprehensively enforce all rules. Cooperation between all levels of government, or a “whole-of-government” approach, clearly is the most effective way forward.
Regulatory intervention ideally needs to tread a path that does not stifle innovation and is sufficiently agile to facilitate technological development and to support the new applications.
Historically, drone regulation has been focussed primarily upon safety considerations but increasing attention will need to be paid to privacy and data protection laws. Globally, there are varying levels of maturity in such legislation ranging from comprehensive, principles-based data protection regimes, such as Europe’s General Data Protection Regulation (GDPR), to the patchwork of sectoral and state laws in other jurisdictions.
The development of a consistent regulatory and operational framework for drones must also consider design and product liability issues which in turn are closely connected to the development of drone-specific airworthiness standards, including mandated “fail-safe” functions.
In addition to the development of bespoke policies, insurers are using innovative solutions such as on-demand “pay-as-you-fly” products and providing add-on or write-back cover within existing product lines. The increasing use of drones in high-density-population areas discharging services like deliveries and operating as taxis will increase the focus upon compulsory third-party liability insurance in jurisdictions that do not at present mandate such cover.
