As insured's needs change, artificial intelligence (AI)-based technology is changing as well. This transformation — dare I say disruption — is impacting the insurance industry and creating challenges for several types of carriers. New technologies and related evolving consumer trends are creating new risks. Digital and AI-based technologies can help insurers deal with these changes, and in other cases are both the disruption's cause and the remedy.

Related: The three pillars of AI value add for claims

Technology is making waves

Digital technologies create conveniences and other opportunities for consumers. But at the same time, these trends create new challenges for insurers. Consider these emerging disruptive trends and the risks they create:

— Drones: I recently bought a small drone, and what struck me the most was how dangerous it is. What if I lost control in a crowded area? What if I lost control and caused a car to crash? Then I saw the high-end quads and realized what the real danger is. These things have four and a half mile ranges. Although the Federal Aviation Authority bans flight about 400 feet, the facts is, I have seen YouTube videos of flights well above that. Now the risk involves drones potentially interacting with airplanes; the liability and physical damage risks are significant.