China Launches First Cross-Boundary eVTOL Insurance to Enhance Low-Altitude Economy
China has introduced its first cross-boundary insurance policy for eVTOL aircraft, facilitating operations between Shenzhen and Hong Kong. This initiative aims to unlock the potential of the low-altitude economy, projected to reach 3.5 trillion yuan by 2035.
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China has launched its first cross-boundary insurance policy for ultralight eVTOL aircraft, providing over HK$20 million ($2.55 million) in coverage for the S-Zero model. The policy, developed by People's Insurance Co (Group) of China Ltd (PICC) in Shenzhen and PICC (Hong Kong) Co Ltd, covers equipment damage and third-party liability, addressing regulatory gaps between Shenzhen and Hong Kong that previously hindered operations.
The low-altitude economy is expected to grow from 1.5 trillion yuan ($221 billion) in 2025 to 3.5 trillion yuan by 2035. A pilot program for a Shenzhen-Hong Kong low-altitude logistics regulatory sandbox is set to launch this month, aiming to streamline cross-boundary flight operations.
Testing of drone delivery routes is also planned for this year, enhancing logistics services between the regions. Establishing coordinated airspace management systems will be crucial for facilitating these advancements.
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