I conjure that supervisory arrangements to share information across agencies and borders had also assisted in expanding and strengthening the investigation effectiveness. Second, we need broader toolkits that allow for more targeted and proportionate interventions. Several are worth mentioning. Good progress has been made in recovery and resolution planning that ensures large financial institutions can be unwound in an orderly fashion without threatening broader stability. In Malaysia, the takaful and insurance protection system complements supervision through differentiated premiums that create strong incentives for insurers to maintain prudent risk profiles. And different enforcement approaches, such as enforceable undertakings, can be an effective way to tailor supervisory responses to risks at the institutional level. Third, we need to recognise that regulation is as much an art as it is a science. Experience suggest that authorities should prioritise rules that are appropriate for their jurisdictions, and at the same time, allow room for regulatory and supervisory discretion to respond to emerging and specific risks. This is important if we are to reconcile and balance the trade offs between the practical limitations that regulators face, the desire to avoid excessive regulation, and the need for authorities to act to mitigate risks. The exercise of regulatory discretion should be subjected to appropriate rigour and accountability. And it should be supported by a stronger focus to develop regulatory experts, rather than just more regulations. This requires deep knowledge of the industry, but also wisdom and discernment.

The idea here, is not to view the insurance industry’s stability in isolation, but to be seen within the wider context of preserving social and economic value of insurance systems. A new paradigm on ethics Technological advances and scientific breakthroughs have opened new possibilities to operate and deliver products to customers. Technological innovations will make customers better off but insurers on the hand, may be confronted with some fundamental ethical issues. For insurance companies, this requires a rethinking of professional and ethical standards. Thus, a need for a new paradigm on ethics. For example, with greater ability to aggregate and analyse more data from multiple sources, questions arise on the extent insurers should consider using genetic and social preferences in underwriting. Or whether it is acceptable to commit someone to a long-term financial undertaking when they may not fully comprehend the implications of their choices even though insurers might truly believe it is ‘good’ for them. And then, there is always the dilemma and trade-offs in directing more resources toward social impact investments, in cases where it lowers risk-adjusted returns for policyholders. As advancements in technology brings about various unknowns and a blurring of business lines, professional and ethical standards need to be embedded into our DNA to ensure the integrity of 3/5  BIS central bankers' speeches  our industry. When it comes to ethical values and conduct, we must move beyond conceptual discussions to practical applications. Time and effort must be undertaken to raise the standards of competence and developing well-defined codes of behaviour.