While there are few ILS deals sponsored by Asian insurers, we expect to see more interest as insurers become increasingly sophisticated and focused on efficient management of risk and capital. MAS is developing a regulatory framework for ILS and will consult the industry in due course. Development of more advanced risk management techniques has to be supported by more sophisticated research. For example, more reliable estimates of catastrophic losses will allow insurers to better price and write larger risks. For ILS to be priced and rated, more robust risk models are needed. Singapore is well-placed to serve as a centre for Asian insurance research. We therefore encourage the industry to deepen its ties and collaboration with academia, and identify the relevant areas where greater research can make a difference. MAS is prepared to consider supporting worthy projects financially. Conclusion Ladies and gentleman, the success of our initiatives to grow the insurance industry is contingent upon active participation from the industry. As new products are introduced and more players enter the market, there will be greater vibrancy in our insurance industry. There will be greater cross-fertilisation of ideas and upgrading of skills, which will underpin the continued growth of Singapore into a thriving insurance marketplace. MAS and GIA have enjoyed an excellent working relationship over the years, and we look forward to many years of close and fruitful cooperation. It is our collective aim to continue to grow the vibrant insurance industry in Singapore and to bring it to even greater heights. Thank you.

These tests are designed to assess the adequacy of internal analyses and ensure firms have forward-looking, institution-specific, risktailored planning processes that provide a level of assurance that you can survive a prolonged period of financial distress. 5. Data and Technology: When an industry sees changes of the magnitude experienced in the financial sector over the past seven years, it is inevitable that the data and technology capabilities need to evolve to meet the new environment. With the range of new mandates around capital stress testing and liquidity (to name a few) and the associated reporting requirements, firms will need to ensure that application development and system changes are well controlled and that data quality is paramount. Data will need to be shared across jurisdictions, so firms will need to focus on verifying the consistency, quality and availability of data, regardless of the format requested. 6. Project Management: With the range of changes required under the new rule, most firms will need to invest in a strong project management program. Deliberate and robust coordination across a range of issues, including structure, business strategy, booking model, financial reporting, capital and liquidity, and data management, to name a few of the key work streams that must be effectively managed and executed to meet the new standards. And, given the other changes that firms must go through to meet home country rules (or other host jurisdiction requirements), project management needs strong connections across the global organization. 7.