Drone Technology
Sourcing and integrating a portfolio investment
Unmanned Arial Systems (UAS), commonly referred to as drones, have become central to the functions of various businesses and governmental organizations and have managed to pierce through areas where certain industries were either stagnant or lagging behind. From quick home deliveries to scanning an unreachable military base, drones are proving to be extremely beneficial in places where man is unable to perform in a timely and efficient manner.
An opportunity within UAS came of interest to a holdings company working group for its potential applications. Of note, drones presented a growth opportunity for improving the speed and accuracy of underwriting and claims settlement for large, global insurance companies. The need for understanding the uses in this space was fueled by outside competitors innovating at a faster rate. In an industry ripe for disruption, failing to stay ahead would be consequential on premium retention.
The Goal
An inter-company working group of a financial holdings company sought to leverage LDR’s advisory services to identify an investment opportunity and integrate the company’s solution into its core insurance operating portfolio.
The Challenge
Find the right UAS investment - at the right price -and integrate the new acquisition seamlessly into the holding company’s portfolio.
Our Approach
LDR conducted an analysis of the UAS competitive landscape to produce both a short-term solution to reduce insurer expenses through UAS services and a long-term solution to solidify operating companies’ innovative offerings to enhance the customer experience.
The Results
In just four months, LDR led the investment of a UAS company and integrated it within the holding company’s portfolio.
Key Accomplishments
Alignment of subject matter experts from the core insurance portfolio to understand industry pain points
Identification of the highest value investment opportunity available
Integration of the invested company’s services to mitigate disruption through investment
The holding company’s network of insurers helped grow the company’s international presence, mutually providing value to all involved stakeholders