Insurers who have lagged in adopting technology in the past have the opportunity to step up by embracing the fourth industrial revolution, Lloyd’s Director of Performance Management Jon Hancock says.

“Can we as an industry say that we have adopted technology and Industry 3.0 in the same way that many other industries have? I don’t think we can,” he said at the annual Reinsurance Symposium at Baden-Baden in Germany.

“However, we have a massive opportunity to leapfrog the third industrial revolution and get ahead of the game.”

Opportunities from the fourth industrial revolution, centring around digital connectivity and automation and termed Industry 4.0, were discussed at the Baden-Baden event, hosted by Guy Carpenter.

Guy Carpenter CEO International James Nash says the quality and quantity of data available should enable more precise underwriting that offers opportunities to grow and innovate.

“Industry 4.0 puts societies and economies on the cusp of one of the most significant periods of change, and we must work with capital providers to help understand how risks are likely to evolve so they have confidence in deploying their capital at acceptable risk parameters,” he said.

RMS CEO Karen White also says the industry is at a pivotal moment and disruptions are often “ruthlessly unkind” to incumbents who don’t embrace change.

Tech-driven innovation should allow the industry to deliver better value to customers, amid impacts from extreme weather, climate change, man-made disasters, a shift in value from tangible to intangible assets, cyber risks and liability and litigation trends.

“The dynamics of the risk market and our industry demand that we change and adapt, while at the same time technology has evolved so that it can be harnessed in new ways to drive change effectively,” she said.

Scor Global P&C Deputy CEO Laurent Rousseau says the need for greater sophistication and depth will remain.

“When I see companies focusing purely on the transactional aspect of our business, in my view they are losing sight of what really makes a difference, which is the ability to deliver our own in-depth view of risk.”