Claims executives have a choice: Either they can keep pace with their customers or run the risk of being outpaced by the underlying technological drivers that effect changes on all industries.

Today innovations haven't just affected back-office insurance operations. Some are beginning to have profound effects on insurance claims, introducing new types of claims and shifting risk. Innovation is not only revolutionizing business operations, it's reshaping the claims landscape.

Internet of Things (IoT)

Power plants that at one time had hundreds of on-site engineers monitoring production and safety outputs from a control room can now outsource that task remotely using connected devices and sensors. For example, a redundancy control room in Atlanta may use three engineers to monitor 300 gas turbine plants worldwide around the clock. For carriers and claims officials, this signals a potential shift in risk. In the event of a breakdown or unplanned outage, it may no longer automatically be the power plant's fault. Those same IoT sensors could communicate the breakdown's cause, helping the carrier determine whether fault lies with the contracted company, software manufacturer or power plant — and which should bear what degree of responsibility. No doubt this will also spark new contractual requirements between parties; this is especially important in the event of an incident with third-party damages