While this represents a large gap in insurance protection in the region, this also points to significant opportunities for rapid growth and developments in the near future. The ASEAN insurance market hosts a diverse group of foreign players. Many have strong presence in the region and even pioneered the development of the insurance market in some member states. Similar to most ASEAN countries, Malaysia welcomes their participation. In 1/4  BIS central bankers' speeches  2017, foreign players represent almost half of the ASEAN insurance market participants, including via participation in domestic companies. These players have brought in sound business models. Their strengths and expertise have contributed to the development of the regional insurance industry. They have been given greater market access through liberalisation measures undertaken by ASEAN countries over the years, such as that in the marine, aviation and transit insurance segment. Nevertheless, comparing against the speed of expansion of foreign insurers in the region, one can argue that the pace at which the full translation of the corresponding benefits to the development of the local insurance markets remains uneven. I would like to share three observations of their presence that could be relevant: First, we can acknowledge that foreign insurers have contributed positively and extensively towards the more pragmatic and contemporary regulatory enhancements. However, this also means that regulatory design is heavily influenced by them. In other words, there could be risks of regulatory capture where policies and decisions could favour the foreign players at the expense of the local industry and public.

•  The published Allsopp analysis included a challenge from the major central banks to the major market participants to develop a new settlement mechanism. In short, find a solution or we will find one for you! I recount this history to highlight the magnitude of the achievement CLS represents. The establishment and growth of CLS is undoubtedly one of the most significant accomplishments in global financial markets in the post-war period and a major breakthrough in managing settlement risk in an over-the-counter market. BIS central bankers’ speeches  1  •  The largest part of the achievement, of course, is the difficult job of making it happen. CLS was actually the third major concept for FX settlement. It succeeded because the industry collectively got firmly behind CLS and because of the hard work of the many people in the CLS organization, whose commitment and efforts continue to this day. Let me highlight three dimensions of CLS’s success. First, its growth and its scope. When it went live in 2002, CLS began settling FX transactions in just seven currencies with 39 settlement members. Today it settles in 17 currencies with 63 settlement members and 16,000 third party users. Volumes and values of transactions settled via CLS have also expanded significantly. Today CLS is settling average daily values of nearly $ trillion and average daily volumes of 1 million transactions. On its peak settlement value day, March 19, 2008, CLS settled over 10 trillion U.S. dollars equivalent. Second, adaptation to a rapidly changing foreign exchange market.