In the budget, the Government maintained its focus on diversifying the economy, increasing productive employment and maintaining a stable macro-economic environment. The key Macroeconomic objectives for 2011 are;   To exceed 6% GDP growth;    To reduce end-year inflation to 7.0%; and    To maintain international reserves of at least 4 months of import cover. The growth in GDP for 2011 is premised on the continued strong performance of the agriculture, mining, construction, manufacturing, transport and communications and tourism sectors. Inflation outlook for the fourth quarter of 2010 In the fourth quarter of 2010, annual overall inflation is projected to remain below the end year target of 8.0%. This favourable outlook is on account of expected stability in maize prices in view of the bumper harvest in 2010; expected favourable supply of vegetables and fresh fish during the period and expected relative stability of the exchange rate of the Kwacha against the US dollar for much of the fourth quarter. At end-September 2010, annual inflation was largely unchanged at 7.7% compared to the 7.8% recorded in June 2010, due to a decline in annual food inflation against a rise in annual non-food inflation during the same period. Consistent with this outturn, inflation projections indicate an annual overall inflation rate of 7.3% for end-December 2010. The Bank of Zambia will continue to monitor developments and undertake appropriate monetary policy actions to ensure that monetary targets are achieved.

Professionals in the insurance industry can therefore expect to play an important role in this environment of increasing complexity in financial services that is accompanied by the increasingly sophisticated demands by businesses and consumers. In this environment, insurance professionals are expected to not only raise the service standards, but also to align themselves to be a part of a workforce that is productive, innovative and strategically more focused in advancing the insurance industry to the fore front of the financial services sector. While the regulatory authorities have given considerable attention to efforts to empower, educate and safeguard consumer interests, sound market conduct practices and a commitment to raise the standards in consumer protection remains largely in the hands of insurance professionals. Apart from the need to constantly acquire new knowledge and skills, the observance of ethical practices and a professional code of conduct must be complete and comprehensive. Indeed, an unrelenting adoption of the highest standards of professionalism and integrity is essential in generating public confidence in the insurance industry. Ladies and Gentlemen, It is therefore, recognised that we need to continuously invest in human capital to create a pool of high-caliber professionals with the necessary competencies that can deliver high value-added insurance products and services, adopt advanced business practices, build public trust and confidence, and thus advance the industry to greater heights. MII, being the premier insurance education and training institute in Malaysia , shoulders an important responsibility in developing the human capital for the insurance industry.