As use of drones takes off, so will risks, says Lloyd's insurers

Cyber-attack, pilot error and privacy issues must be considered by makers, users and insurers of unmanned aerial vehicles, according to report

A sharp escalation in the use of drones will bring increasingly complex risks from cyberattack, reckless pilots and privacy issues, a new report from the Lloyd's of London insurance market has warned. Spending on unmanned aerial vehicles is likely to double to more than $90bn by 2024, Lloyd's predicted, but makers and users of the machines, as well as insurers, are relatively unprepared for the emerging consequences.

"Drone technology has significant potential, but is a particularly novel - and controversial - emerging technology. Insurance is expected to be a key component in the risk-management framework that will need to be developed for the systems to operate safely and with due regard to third-party interests," it argues in the report "Drones take flight".