Technological change is a major threat to the financial services industry, according to Deloitte’s Centre for the Edge.

“We have been talking about how technology disrupts business since 1993, but the pace of change is being pushed by Generation Y on the way we communicate,” Chief Edge Officer Peter Williams told the AIA Group Insurance Summit in Sydney last week.

“We are seeing a tectonic shift in how people are using technology to communicate.

“Australian consumers are absorbing technology like sponges, while institutions are absorbing it like bricks.”

A Deloitte survey on technology use shows more consumers now watch series and films online than on TVs.

“This is the first time the web has overtaken the traditional way of watching television.

“We found 63% [of respondents] watch TV on a laptop, while 81% watch it on their smartphones. People are using the web to do everything now.”

Mr Williams says when CGU realised product sales to small business owners via brokers were falling, it decided to sell direct.

“Deloitte was brought in to create a website for the direct business in 12 weeks. We chose to focus on the end customers and what they wanted.”

Companies must act quickly to stop sales falling, or the market will soon vanish, according to Mr Williams.

“The best sites connect with the consumer, but they decide how they communicate with you. We found small businesses did not know what cover they wanted, so we helped them to choose.

“The research showed the business owner tended to ask somebody other than the insurer what cover they need.”

Mr Williams highlights a number of ways to engage and communicate with consumers, such as through games, competitions and scorecards.

He warns there is little time to ponder new strategies.

“The digital culture among consumers will grow. And remember, if something can go digital, it will. If a business identifies something that needs changing, don’t wait for the consultants.”

Mr Williams says the best approach is to experiment with new technology, then build the results into the business.