Backing the Brave: Why Underwriting Emerging Sectors is a Risk Worth Taking

When drone technology first emerged as a commercial possibility, it didn’t just challenge airspace, it challenged the entire insurance industry.

Underwriters were faced with a dilemma: back an exciting but untested sector or wait for someone else to take the risk?

At Moonrock, we remember those early conversations. There was nervousness. Headlines focused on drones near airports, imagined disasters in crowded skies, and unregulated tech spiralling out of control. But in that space of uncertainty, a few players saw potential. That leap of faith made all the difference.

Taking the First Step into the Unknown

When a sector has no historical data, no claim patterns, and no regulatory clarity, underwriters can easily say, “Not yet.” But someone has to be first. That is where opportunity lives.

Simon Ritterband, our Managing Director, put it plainly in a past Insurance Times article:

“The UKGI sector must ask itself if it wants to be an inhibitor or a supporter of UK PLC.”

That was the heart of it. Drone insurance wasn’t just about managing risk, it was about enabling innovation. And the insurers who supported that innovation early on, such as Hiscox and Apollo, weren’t just making bold decisions, they were building future-ready portfolios.

What Changed? Knowledge, Data and Trust

Over time, drone operators became more professional. Regulators like the Civil Aviation Authority introduced clear guidance. Risk profiles became easier to define. Insurers gained visibility, not just into potential hazards, but into safe practices, training standards and technical resilience.

This shift turned what once felt like guesswork into specialist underwriting. Insurers began offering tailored policies, from public liability and hull cover to equipment and data protection, because they had the insight to do so responsibly.

According to Grand View Research, the commercial drone market is now valued at over $30 billion and is expected to reach more than $54 billion by 2030, growing at a compound annual growth rate of 10.6%.

That growth was unlocked in part by early insurance support. It is proof that when the industry gets behind innovation, it flourishes.

What’s Next? The Sectors Waiting in the Wings

Today, sectors such as autonomous vehicles, eVTOL aircraft, virtual production and advanced robotics are where drones were a decade ago, promising, underdeveloped and misunderstood.

The same underwriting questions apply:
Can we quantify the risks without precedent?
Do we price fairly enough to support growth while still protecting the book?
Are we willing to gain expertise while others sit back?

The early-mover advantage is not just about reputation or market share. It is about learning. The first underwriters in an emerging space build the deepest knowledge base, and that pays dividends when the sector matures.

The Bigger Picture: Why Supporting Innovation Matters

Photo by Dose Media on Unsplash

New sectors bring economic growth, jobs, export potential and societal benefit. But they also rely on fundamental infrastructure, and insurance is part of that. Without accessible and intelligent cover, many innovative businesses cannot even get off the ground.

This doesn’t mean saying yes to everything. It means learning quickly, engaging early and being proactive in risk assessment. It is not just about writing policies, it is about writing the future.

If you’d like to explore Simon’s full comments on the early drone insurance market, the article is available on Insurance Times.