Clarity and foresight are critical as brokers adapt to rapid technological change and shifting customer expectations, Austbrokers & IBNA Member Services (AIMS) GM Glenn Schultz says.

Insurance and risk management faces four simultaneous innovation narratives, including re-examination of every part of the value chain, he told the AIMS annual conference in Perth last week.

“Distribution has been a particular focus for innovators, but underwriting, claims, operations and everything else are also under the microscope,” he said.

Innovators are finding new ways to manage risk and prevent and treat losses, rather than just compensating after events, while automation is taking over routine tasks.

“Probably most importantly, customer expectations are being reset in ways that are shocking many within our industry.

“When our customers begin asking ‘Hey, Google’ for a quote on their home and contents insurance, the train will have long since left the station on a stellar experience coming from within the industry.”

Mr Schultz says brokers are moving towards an enhanced role as risk advisers, but the transaction of traditional insurance products remains paramount.

He warns that insurers focusing on risks that have a “very tiny” probability of claims could lead to premium decline and other consequences.

“Not only does this lead to frustrated customers as those with real risk struggle to find risk transfer solutions but, more importantly, these very actions are opening doors for alternate competition.”

Industries and companies facing transformational change will reach an inflection point where they begin to uncouple from old ways and only invest in the new, Mr Schultz told the conference.