Three “invisible forces” are changing the industry, Insurance Council of Australia President Mark Milliner says.

He says a decline in real assets, growing availability of information and increased regulation are “silently reshaping” the insurance market.

Amid social and economic pressure, homes are getting smaller and more secure, with contents more traceable, Mr Milliner says.

Speaking at the Steadfast Convention in Sydney last week, he says cars are becoming cheaper and lasting longer, while better public transport and more flexible rental schemes in the future will push down ownership. New technology will bring fewer accidents and “thief-proof” cars.

Mr Milliner, who is CEO Personal Insurance at Suncorp, said he questions “whether motor vehicles will become too safe to insure”.

He says there is a shift away from owning goods and towards “experiences”.

“The music, videos and books of the future will be an accessible experience, not an insurable possession. The insurance needed in this environment is very different.

“For instance, instead of insuring homes we might be insuring lifestyles – the elements that contribute to someone’s quality of life.”

The second reshaping force is “information-flattening”.

Future consumers will have easy access to a wide range of statistics, including those used by insurers to calculate risk, Mr Milliner says.

“Information technology will allow users to better compare all available products and move more easily between insurance providers.

“They will be able to compare performance of insurance providers – who pays out most, fastest or slowest.

“Information will be everywhere, and everywhere unharnessed.

“We will operate in a world where information is freely accessible to all, but not always accurate or true. In the information-flattened world, reputation and trust will be more critical and more vulnerable.”

The third force is the “regulatory squeeze”, Mr Milliner says.

He believes the industry will be regulated internationally, but warns the right approach must be taken.

“The danger for regulators in an information-rich environment is that they become overly prescriptive and regulate in a rabbit warren, chasing small problems at the expense of systemic issues.

“We should expect regulators in this new world to embrace principles-based regulation rather than detailed and overly prescriptive rules.”

There will always be insurance, “but what we insure will be different and how we insure will be different and it will be a much tougher market”, Mr Milliner says.

Companies must adapt or “follow the dinosaurs into extinction”.