The Delaware Department of Insurance issues a bulletin on the use of drones by insurers.
Insurance carriers are increasingly using drones to help improve claim processing, loss assessment and underwriting by reducing costs associated with traditional inspections.
"We want to make the process easier especially when it comes to claims for consumers. We just want to make sure that the new technology is used in a way that's not unfairly discriminatory, or used in a way that will slow or prevent the claims processing," said Insurance Commissioner Trinidad Navarro.
The drones are specifically used more and more by property insurers for reviews of policyholders' roof conditions.
"What has been happening is a lot of the industry, and the individuals using this technology are perhaps not following up,” said Navarro. “In other words you may have a distorted image from a drone that does may suggest damage or normal wear and tear or wind or water damage, and we just want them to verify that."
The problem is roof discoloration and streaking cited by carriers as a reason for policy nonrenewal or cancellation is not a valid reason according to the Department of Insurance.
The bulletin issued by Navarro states carriers must continue to follow the Insurance Code relating to policy activities.
It also states policyholders have to be given proper notice and a clear explanation of the specific reasoning for any cancellation or nonrenewal including when drones contribute to the determination.
