At the same time, I intend that we will bring forward proposals under our Pillar 2 regime which should also reduce the risk that our capital standards are overly prudent for smaller firms using the standardised approach to credit risk to calculate their requirements – essentially by looking at capital requirements in the round rather than assuming that a simple “sum of the parts” approach will necessarily deliver the right answer. In the same vein, we will deliver what we promised in our Annual Competition Report this summer, improving the process by which small firms can transition to internal models. All this demonstrates how we can address unintended consequences while remaining true to the revolution’s goals. Too early to say  In 1972, Chinese Premier Zhou Enlai was asked about the impact of the French Revolution. His answer: “too early to say”. While it emerged forty years later that Zhou was probably not referring to the 1789 storming of the Bastille – 5  but instead thinking of the 1968 student riots in Paris – his remark is apt at the current juncture . It is too early to say how business models will shape up in the future. 5  Zhou’s cryptic caution lost in translation: By Richard McGregor, Financial Times, June 2011, available here: https://www.ft.com/content/74916db6-938d-11e0-922e-00144feab49a 8  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  8  For insurers, the low rate environment and persistent soft conditions in many segments of general insurance are creating real pressures.

6 FM Global's investments into deepening its capabilities in Singapore are well aligned with MAS' Financial Industry Transformation Roadmap, or ITM 2025, launched early last month. As a key risk financing centre for Asia, we want insurers here to develop deep, data-driven capabilities in risk assessment, risk quantification, risk advisory, and across key risk areas such as climate, cyber, health, and pandemic. 7 The insurance industry in Singapore will also need a deep talent pool to support its growth ambitions, increasingly comprising multi-disciplinary expertise, combining scientific, engineering, underwriting and business knowledge. FM Global's recently established research unit will collaborate with local institutions such as the NTU's Earth Observatory, to share practical, scientific approaches to commercial property risk management. FM Global is also partnering with local universities to offer internship programmes in sustainability and climate resilience. And under ITM 2025, MAS has also set aside $ million in grant funding over the next five years to support capacity building, new financing solutions, and talent development. 8 In conclusion, Singapore's insurance industry is well positioned to support the region's growth and development through its strong risk management data and insights, ex-ante risk advisory and ex-post risk financing solutions, and stewardship of clients' business models to build resilience. The opening of the FM Global Centre adds to the already strong capabilities in Singapore, and can bring even greater value to businesses in Singapore and across Asia. Congratulations to FM Global on the opening of the FM Global Centre, and I wish you every success. Thank you.