However, there is a severe paucity of data on Asian risks. Singapore is addressing this gap by setting up several research institutions to gather and analyse data in specific areas of risks. •  For example, the Institute of Catastrophe Risk Management (ICRM) at the Nanyang Technological University is currently undertaking research projects for flood and earthquake risk assessment in selected Asian cities. •  In addition to collecting and analysing the data, ICRM conducts on-site studies and risk assessments of the cities in question, and develops hazard maps and risk models. •  To ensure that its research is relevant to the industry, ICRM actively reaches out to industry players through seminars and workshops. Third, increasing risk awareness. MAS supports efforts to raise risk management awareness in the region. •  I am pleased to note that Asia’s first association for risk managers, the Pan-Asian Risk and Insurance Management Association (PARIMA), was set up in Singapore in April, with strong support from the insurance industry. •  As a platform for dialogue between risk managers and the insurance industry, PARIMA will help to enhance risk culture and risk management capacity in Asia. Develop the marketplace I will now move on to our efforts to develop the insurance marketplace in Singapore. We have three key thrusts for marketplace development. First, expanding the broker network. Singapore already has a vibrant broking cluster, which has played a central role in facilitating business flows. We play host to over 70 insurance brokers.

Four of the top five brokers in the world have their regional hubs in Singapore. Today, brokers are not just intermediaries, but also high-value service providers who drive innovation and collaboration in the industry. •  Many brokers provide a wide range of risk management services. These include dynamic financial analysis, risk management and actuarial consultancy, portfolio and financial modelling, and catastrophe modelling. •  Some brokers have also begun to tap alternative risk transfer solutions to manage more complex and larger risk exposures and liabilities. We are keen to encourage brokers to use Singapore not just as a placement centre, but also as a centre of excellence for innovation. •  A good example of this is Aon, which recently established its Analytics and Innovation Center in Singapore to provide analytics solutions to the Group’s business units on a global basis. Second, encouraging a subscription market. To underwrite large and complex risks, insurers need to collaborate. Risk sharing enables market participants to diversify their portfolios. We want to promote a true subscription market, where insurers not only share risks, but also expertise. The subscription concept leverages both the deep expertise of the lead insurer and the supporting capacity of the other insurers to cover a variety of large and complex risks. 4  BIS central bankers’ speeches  Such deep collaboration requires contract certainty. Contract certainty ensures the finalisation of terms and conditions of the policy prior to inception of risk and therefore, serves to minimise ambiguity and disputes over claim and coverage.