With the integration of drone technology into the security industry growing rapidly in South Africa, an insurance company has reiterated the importance of acquiring insurance cover for these operations, so as to provide a crucial safety net against a host of risks associated with drone operations.

iTOO Special Risks – Hollard Insurance’s underwriter of speciality products that include cyber risk, art and drone technology – had a practical experience on just how fast the commercial drone industry is growing in South Africa and neighbouring countries, at an industry event in June which the insurance company sponsored.

Close to 200 industry stakeholders attended the event, which had brought in experts and service providers from all over the world to shed light on the state of drone technology in Africa today and what the future holds.

And having been in the drone insurance space for a few years now, Kopano Tholo, ITOO’s in-house drone expert, says his company has seen enough to indicate that the security industry is one of the sectors in which drone technology is fast taking root.

According to Tholo, the integration of drone technology into security operations has revolutionised the way the security industry approaches surveillance and threat detection, with unmanned aerial vehicles UAVs) offering unparalleled advantages and efficiencies.

This rapid uptake of drones in the security sector has been driven by their versatility and cost-effectiveness, Tholo notes, as they have quickly found applications in private sector security due to their ability to provide aerial surveillance and gather real-time data.

“This shift has also been facilitated by advancements in drone technology, making them more accessible and easier to operate,” Tholo said.

“As a result, security agencies, private companies and even individuals are increasingly adopting drones to enhance their security measures.”

So fast has been drone adoption in South African private security circles that the government so it fit to gazette regulations for drone operations specifically targeted for the security industry.

Security company Fidelity ADT was the first to dabble with the security drone game in 2020, to lead the arms race for drone integration among security companies; ahead of others that include Hassar Security and Defence Solutions and Thorburn Security Solutions; the latter of which has been working with rising security drone services provider Drone Guards to buttress security missions and patrols by its ground personnel.

The South African Police Services has also joined the bandwagon and set up it’s own drone unites across the country.

Then of course, there is Bidvest’s UAV and Drone Solutions (UDS), whose fleet of over 400 drones makes it the biggest drone services company in South Africa.

Heico Kühn, Chief Operating Officer at UDS notes that South Africa has a rich legacy of using drones for security purposes, with the military operating weaponised drones since the 1980s.

“Most of these drones are used for mine security applications. Mines typically struggle with illegal mining activity and mining sites normally house equipment that contain copper, steel and diesel and therefore experience a lot of theft,” said Kühn.

“To combat this, most mines have deployed drones for perimeter surveillance and as a reaction tool that can guide ground forces to any suspects that have been spotted from the air.”

Kühn added that drones are also extensively used by state owned entities, such as electricity, rail and pipeline parastatals, to secure their assets, which is often targeted by copper thieves and sophisticated crime syndicates.

While physically patrolling such vast networks is very expensive, drones have proven to be very valuable for these SOEs.

Needless to say, Tholo said as the use of drones becomes more widespread, the importance of obtaining drone insurance cannot be overstated.

“These risks include potential damage to the drone itself, liability for injuries or property damage caused by the drone, and even legal expenses arising from accidents or regulatory violations,” he said.

“Without adequate insurance coverage, drone operators could face significant financial burdens in the event of an incident.

“One of the main reasons to secure drone insurance is to protect against third-party liability. Drones, especially those used in populated areas or for commercial purposes, can inadvertently damage property or injure people. For instance, a drone might crash into a building, vehicle or person, leading to costly repairs or medical bills.”

He added that liability insurance covers these expenses, ensuring that drone operators are not personally liable for damages. This protection is particularly important for commercial drone operators, who may face higher risks due to the nature and frequency of their operations.

“For instance, drones offer such benefits as rapid deployment, real-time data transmission and the ability to cover vast areas quickly and efficiently. These capabilities make drones an invaluable asset for enhancing traditional security measures, including perimeter protection, event monitoring, crowd control and emergency response.

“Arrests are made weekly with the help of drones across many parts of the country. These arrests often come with lengthy prison sentences as the crimes occur on critical national infrastructure.”

Research firm Industry ARC reported that South Africa’s small drone market is experiencing rapid growth and is expected to reach R2.4 billion by 2025, growing at a compound annual growth rate of 22.35 percent from 2020 to 2025.

Another report by Statista revealed that revenue in the drone market in the rest of Africa will amount to R843 million in 2024, with a projected compound annual growth rate of 5.01 percent between 2024 and 2028.