Insurers must grasp new opportunities in a rapidly changing world, or risk ending up on the scrapheap, says Berkshire Hathaway Specialty Insurance Australasia President Chris Colahan.

In a keynote speech at the Australian Professional Indemnity Group conference in Sydney last week, he said the industry must adjust to a “new normal” of low growth and surplus capacity, and the huge disruption technology will bring.

“There are whole new companies that need insurance, such as Uber and Airbnb,” he later told insuranceNEWS.com.au.

“We will have to adapt to robotics, artificial intelligence and 3D printing, and there will be new things such as driverless cars, smart homes and drones to insure.”

New distribution methods will emerge, with potential for companies such as Amazon, Google and Facebook to permanently alter the insurance landscape.

“These companies have huge access to customer data and the only thing stopping them from getting involved in general insurance is the fact they are making so much money doing other things,” Mr Colahan said.

Business processes and people management will need modernising, too.

“As a new entrant to this market we have had to think hard about how we will win,” Mr Colahan told insuranceNEWS.com.au.

He believes a new focus on the customer is required, with complex business processes that do not add value discarded.

Companies will need “brilliant people in an environment that enables them to be brilliant”, with old-fashioned performance management techniques scrapped.

Individuals will require good analytical skills in a data-rich world, and a curiosity about the world around them.

“Things are going to be massively different and will continue to change. What this means for businesses depends on how they respond. Some companies will win and others won’t.

“I fundamentally believe that change brings great opportunity.”