In 2025, major Chinese insurers launched products covering drones and other low-altitude aircraft, reflecting Beijing’s policy drive to develop the 'low-altitude economy'. With strong regulatory support for drones, logistics applications, and urban air mobility, the insurance sector is moving quickly to roll out liability and property covers tailored to this emerging field. Likely claims scenarios include bodily injury to third parties, property damage in congested cities, and product liability linked to drone components or software systems. A systemic failure in air-traffic management could result in multiple simultaneous incidents, exposing reinsurers to concentrated, catastrophe-style losses. Going forward we expect litigation to test the scope of exclusions relating to 'experimental flight' activities, cyber-hacking, and other technology-driven risks. Courts may also face challenges in allocating liability where responsibility is split between operators, manufacturers, and system providers. The rapid expansion of this sector underscores both the opportunities for insurers to capture growth and the heightened legal and underwriting complexities that will shape market practice.