In Singapore, the supervisors of banks, insurance companies and securities houses are housed under one roof in MAS. This has given us a head-start in dealing with current industry trends, with financial product boundaries blurring and insurance companies crossing over into banking and capital market territory. The pressure is on to bring integrated supervision to an even deeper level. BIS Review 44/2002  1  Singapore’s response In today's new risk landscape, MAS aims to develop sound and efficient markets where risk can be effectively spread and mitigated. We need to make sure that best practices prevail in the management as well as regulation of insurance companies. Strong players will make for a resilient industry. Two years ago, Singapore opened up completely the direct life and general insurance market. The earlier closed-door policy had insulated both local and foreign incumbents from competition and engendered complacency. Creating an open and competitive environment was the first step to raising standards and strengthening resilience. Since we opened up the industry, insurers in Singapore have taken various measures to enhance their competitiveness. They have sharpened their business focus, moved into higher-value added and higher-growth areas and improved professional standards. This will stand our insurers in good stead to meet new challenges and opportunities. Meeting new challenges and opportunities Entering new growth areas Globalisation of markets, advances in technology, changing demographics and socio-economic patterns are some trends that will result in new or changing needs for insurance protection and financial planning.

Apart from upgrading professional competency, consideration will also be given to the technical competency of company directors and other staff involved in the insurance business. We will work with industry to formulate an insurance manpower development strategy. We envisage industry players, training providers and tertiary institutions co-operating to develop programmes that will enhance professionalism in the insurance industry. Conclusion MAS will continue to work together with the insurance industry to achieve international best practices and standards. Over the past two years, MAS has worked hard to build a closer partnership with the financial sector. We will continue to promote an open environment and consult actively with the private sector for its views. The relationship between the regulator and the regulated should be arms length but not adversarial. The regulator has to be firm, but also friendly. Market practitioners can help regulators generate ideas, keep abreast of market developments, anticipate global trends and review  4  BIS Review 44/2002  our financial sector strategies. Candid, thoughtful feedback, including dissenting views, go a long way to ensure that policies are pragmatic and remain relevant. We hope that such a regulatory environment will help to develop well-managed insurers in Singapore, who will take up new challenges, and play a more active and productive role in upgrading our insurance industry, and thus our financial sector as a whole. I wish you fruitful deliberations. BIS Review 44/2002  5