Technological advances and rapidly evolving risk have combined to create a period of unprecedented change for the insurance industry, according to Aon.

The broker held its 12th annual Advanced Risk Conference in Melbourne last week.

Business leaders heard how the “risk revolution” is being driven by diverse forces including economic instability, the sharing economy, cyber security and terrorism, cloud computing and blockchain technology.

“Never in history has there been as much change as we are experiencing today,” CEO Multinational Clients Jason Disborough said.

“The sharing economy is a game-changer, and a voracious appetite by businesses to use data and information networks is propelling new thinking for risk professionals and Australian businesses as they grapple with these new issues.

“The use of drones, augmented-reality applications and self-driving cars, for example, pose an entirely new risk concern, particularly from a cyber-terrorism perspective.

“These threats need to be understood and well managed to protect critical infrastructure in today’s hyper-connected environment.”

Aon Risk Services Australia CEO Lambros Lambrou believes the insurance industry is operating in volatile and uncharted territory.

“The forces of innovation and disruption that confront the industry are growing but provide strong growth opportunities for those prepared to invest and think more broadly around improving performance and reducing volatility for clients,” he said.

“We must proactively address the concerns associated with new and emerging risks through the delivery of a fundamentally different client experience. To address the risks of today’s interconnected world, businesses must draw on fact-based insights and solutions.”