The guidelines for internal governance will deal with the main responsibilities for the Board, stress the importance of transparent and performance-linked compensation; emphasise the need for the integrity of financial information; encourage fair dealings with the members of the public who are policy-holders and urge insurers to engage in regular communications with policy-holders. BIS Review 44/2002  3  Life insurance companies are entrusted with the management of long term funds. We are considering more rigorous corporate governance requirements for life insurers. We intend to formally introduce and enforce the corporate governance framework for the insurance industry later this year. Imposing risk-based capital requirements In a world of new and increased risks, appropriate levels of capitalization are necessary. Insurers face mounting complexities, given the increased volatility of asset risks and the diversity of liability risks. In Singapore, as in many other countries, the existing statutory framework of solvency and capital adequacy for insurers is essentially a "one-size-fits-all" approach. This is clearly no longer appropriate, since different insurers have acquired different levels of exposures to financial risks and developed different underwriting specialties. In banking, a risk-based capital approach is well-established. There are clear guidelines from the Bank for International Settlements, and a new standard is undergoing extensive worldwide consultation. For the insurance industry, the same level of regulatory consensus does not as yet exist. MAS has formed two work groups comprising industry practitioners, representatives of professional associations and regulators to develop risk-based capital models for life and non-life insurance.

Evans, Charles L., and Jonas D. M. Fisher, 2011, “What are the implications of rising commodity prices for inflation and monetary policy?,”(pdf) Chicago Fed Letter, Federal Reserve Bank of Chicago, No. 286, May. Friedman, Milton, and Anna J. Schwartz, 1963, A Monetary History of the United States, 1867–1960, Princeton, NJ: Princeton University Press. Krugman, Paul, 2013, “Secular stagnation, coalmines, bubbles Summers,”(external) New York Times, opinion pages, November 16.  and  Larry  Summers, Lawrence, 2013, speech(external), Fourteenth Annual Research Conference in Honor of Stanley Fischer, International Monetary Fund, Washington, DC, November 8. Taylor, John B., 2013, “A review of recent monetary policy,” testimony(external-pdf) before the U.S. House Committee on Financial Services, March 5. 13  For more about the quantitative easing programs (also referred to as large-scale asset purchases) and the rationale behind them, see Board of Governors of the Federal Reserve System (2013). BIS central bankers’ speeches  9  Taylor, John B., 1999, “A historical analysis of monetary policy rules,” (external-pdf) Monetary Policy Rules, Chicago: University of Chicago Press, pp. 319–341. Taylor, John B., 1993, “Discretion versus policy rules in practice,”(external) CarnegieRochester Series on Public Policy, Vol. 39, Vol. 1, December, pp. 195–214. Taylor, John B., 1979, “Estimation and control of a macroeconomic model with rational expectations,”(external) Econometrica, Vol. 47, No. 5, September, pp. 1267–1286. 10  BIS central bankers’ speeches