By Michael McNamara, head of aviation, QBE

Australia’s aviation sector is on the cusp of its biggest transformation in decades.

The layer of airspace above our homes, businesses, farms, infrastructure and communities – low enough to feel local, yet increasingly important to economic activity – is fast becoming part of the national infrastructure debate. And the opportunity is significant.

More than 40,000 remote pilot licences are already active across the country, supporting everything from crop and livestock monitoring to construction site mapping and emergency services. Electric vertical take-off and landing aircraft (eVTOLs) are also moving closer to commercial deployment.

Together, these technologies are driving the emergence of a low-altitude economy.

The question is no longer whether these technologies will arrive, but how we integrate them safely into an increasingly complex aviation ecosystem.

Through 65 years of underwriting aviation insurance in Australia, QBE has had a front-row seat to that evolution, and the vital role aviation plays in connecting communities, supporting businesses and enabling economic activity across the country.

What makes today's transition different is the combination of technology and scale.

Historically, aviation risk has been relatively well understood, supported by decades of operational experience, data and established safety frameworks. This next phase introduces a very different challenge – a larger and more diverse group of operators, rapidly evolving technologies, and far greater interaction with communities and critical infrastructure.

Drones, and soon eVTOLs, will increasingly operate alongside traditional aircraft in shared airspace, creating new risks involving airspace conflicts, infrastructure interaction, cyber vulnerabilities, battery failures and more complex liability exposures.

As these technologies become more common across cities, regions and essential industries, the consequences of not managing these risks extend well beyond the aircraft itself. A single incident could disrupt transport networks, emergency services, critical infrastructure or commercial activity.

We’re already seeing examples of what this looks like in practice. Recent incidents have involved drones – from collisions with firefighting aircraft to ignition events during agricultural operations. These are not theoretical scenarios; they are early indicators of the risks emerging within this new ecosystem.

CASA's Remotely Piloted Aircraft Systems (RPAS) and Advanced Air Mobility Strategic Regulatory Roadmap recognises this challenge and the need to integrate these technologies safely into Australia's aviation system.

For insurers, this means moving beyond legacy assumptions about risk. It requires a forward-looking approach that considers emerging risks, technological change and how aircraft are operated.

So how do we ensure the low-altitude economy delivers on its promise while maintaining the safety standards that underpin Australian aviation?

First, we need sustained collaboration.

Australia is well placed in this regard, with highly engaged industry associations, regulators, operators and insurers already working together to support the safe growth of the UAV and advanced air mobility sectors.

As these technologies move towards wider adoption, maintaining and strengthening that engagement will be critical to ensuring innovation keeps pace with safety, operational and community expectations.

Insurers also have an important role to play. We see how risks emerge across different operators, technologies and operating environments, giving us a unique perspective on where vulnerabilities and trends are developing. Sharing those insights can help inform practical approaches to certification, operating standards and risk controls across the industry.

Secondly, we need to prepare for scale.

When drones first entered the market, they were largely accommodated within existing aviation frameworks. As the sector matured, dedicated regulations, accreditation and licensing requirements, and specialised insurance solutions emerged alongside it.

CASA's roadmap anticipates advanced air mobility operations emerging in Australia between 2027 and 2029 and identifies scale as a defining challenge, with RPAS already operating in greater numbers than existing airspace users combined.

This means successful deployment won't depend on the aircraft alone, but on whether the systems around them keep pace and how they integrate with existing aviation infrastructure.

For insurers, preparing for scale also means ensuring underwriting frameworks, data capabilities and risk models evolve alongside the sector. As operations become more widespread, insurers will need a deeper understanding of factors such as cyber resilience, battery performance, automation and infrastructure interaction to accurately assess risk, price coverage and support innovation.

Building that evidence base early will help ensure insurance remains an effective enabler of growth as the sector matures.

Finally, we need to educate.

One of the ongoing challenges in the sector has been the number of new entrants without a traditional aviation background – many now coming from industries such as agriculture, construction or logistics. Ensuring operators understand their responsibilities particularly around certification and safe use of shared airspace will remain a key part of managing risk as the sector grows.

More broadly, insurance has long helped businesses adopt new technologies by making risk better understood, more manageable and transferable. That role will become increasingly important as low-altitude aviation continues to evolve.

Ultimately, the low-altitude economy is not just about new aircraft. It is about building an ecosystem that allows innovation to scale safely and sustainably.

In a country as large and geographically diverse as Australia, these technologies have the potential to strengthen regional connectivity, support emergency services and improve access to essential services.

Businesses and communities will only embrace these technologies at scale if they have confidence the risks can be understood and managed. Insurance has helped build that confidence through generations of technological change and will continue to play an important role as the next chapter of aviation takes shape.