CR Kennedy has plans to offer complimentary third party insurance to purchasers of its market-leading DJI range of drones.
The DJI Spark – a new sub-$1000 model which responds to hand gestures.
The policies would offer third party property and personal coverage to drone owners up to the value of $10,000.
‘Up until now, insurance was only available to CASA-licensed drone operators, with expensive professional insurance policies with coverage of $10 million or more,’ explained CR Kennedy director, Robert Kennedy.
He said CR Kennedy will absorb the costs of the insurance, which will give its retail customers an edge competing against overseas retailers or stores sourcing from another local distributor.
‘We believe this is an industry first, and it could well be a world first.’
Drone operators would have to comply with CASA regulations for insurance claims to be recognised.
Robert Kennedy said that the drone business continues to grow.
‘Every month we have more sales than the previous month,’ he said. ‘It’s not only the hobby market – drones have become an accepted tool in industrial markets as well.’ He said drone sales were currently almost doubling year on year.
With over 90 percent market share, DJI was the clear market leader in what he described as a ‘high volume, low margin business’. Competing brands ‘were not even on the radar’ except perhaps for entry level models, and the launch this month of the DJI Spark, at $850, gives CR Kennedy a high-performance product at this end of the market as well.
‘There’s more and more interest,’ said Robert. ‘They are selling in photo speciality stores such as Camera House, Ted’s and Michaels, as well as Harvey Norman and JB, but also hobby stores and computer resellers.
‘We are also looking at expanding into hardware outlets for sale to tradespeople.’
The exciting thing about the drone business is that applications are continuing to be discovered.
‘There are still applications which haven’t even been though of yet,’ said Robert. ‘Eventually it will mature but the market is still uncovering applications; shark spotting, or counting koala populations using thermal cameras. The CSIRO is conducting soil analysis using drones. Coal and iron ore mines produce large stockpiles of waste material which they need to measure on a regular basis. They are using drones to take pictures then photogammetry software for measurement.’
Camera House stores in Far North Queensland are selling drones to farmers who can now do things such as inspect their fencelines and water troughs from their verandah rather than driving to the location. These are people who would not normally visit a camera store.
He also noted that drones were enticing younger people into camera stores, where they might become prospects for DSLR sales – or at the very least printers with which to make photographs from their drone equipment!
‘They are creating new customers for camera specialists,’ he said.