It has issued consumer guides and organized public seminars to educate consumers on fire insurance, property insurance, health insurance and motor insurance under the MoneySENSE national financial education programme. There is, however, more to be done. As Mr Teo mentioned earlier, general insurance penetration remains low in Singapore. Insurance density, measured by gross premiums as a percentage of GDP, rose from 1.0% in 2000 to 1.5% in 2005, but this is still lower than the 1.8% in Malaysia, 1.6% in Thailand, 2.9% in Taiwan and 3.0% in South Korea. When compared against developed countries like UK and Switzerland, which reported insurance densities of between 3.5% and 5.0%, we are much further behind. There is therefore significant room for the industry to grow. It would be worthwhile for GIA to focus on improving insurance penetration in Singapore by identifying insurance lines that have greater prospects for growth. MAS’ supervisory approach MAS believes that there should be a constructive partnership between the regulator and the industry. On our part, we will continue to fine tune our supervisory approach to support the growth of the industry. Competition is a necessary ingredient for growth, but there are many areas where the industry can work together. In particular, the industry should work together to promote best practices in risk management and professional standards. MAS will continue to support efforts by the industry to promote sustainable and healthy growth by maintaining an appropriate regulatory framework that recognises innovation.

China and India's emergence as economic powerhouses have driven cross-border trade and fuelled economic growth in Asia. Japan has rediscovered its vigour. Many Southeast Asian economies are enjoying vibrant economic growth. The resultant wealth creation will increase demand for insurance. To increase our competitiveness as a regional insurance and reinsurance centre, and retain a greater share of the Asian business that traditionally flows outside Asia, it is important for Singapore to deepen its pool of underwriting and broking expertise, especially in the more specialised risks, and to increase the capacity to underwrite such niche risks. We also want to encourage greater specialisation and new techniques in the industry, for example by having specialised service providers to support the industry, and by facilitating access to a wider variety of risk and capital management tools for insurers. Let me share with you some ideas and initiatives we have to help catalyse such developments. Insurance expertise and capacity Firstly, regarding insurance expertise. The industry needs to accelerate its efforts to provide more regional and international exposure, and advance training across a broad range of business lines, to raise the level of technical competency and experience of its staff. The industry should take advantage of MAS' Financial Training Scheme (FTS) which provides co-funding for training. Such efforts should not be focused only on developing the existing talent stock, but also cultivating the talent pipeline. The insurance industry faces strong competition for intellectual capital from other economic sectors.