This could lead to unintended consequences that can make the financial system less, rather than more stable. In a dynamic world, regulation and supervision should be agile, pragmatic and dynamic and able to respond to changing conditions in a timely manner. A bit of uncertainty ought to be tolerated. But at the same time, we should not hesitate to reverse course should a particular rule prove to be ineffective. Rules are never meant to remain relevant in perpetuity. It never does. It always run its course. It is from this perspective that regulators must have the courage to change course. In addition, from another perspective, the importance of proportionate regulation and supervision cannot be overstated. This is an area where I think we must continue to work in developing and refining the approaches to proportionality and support more inclusive insurance markets. In the larger scheme of things, as regulators we cannot ignore the broader objectives of supporting economic growth and improving the overall welfare of society. Equally important, with environmental, social and governance considerations, becoming an important criterion and increasingly adopted by investors, the ethics and sustainability of insurers’ activities will be important factors in creating shareholder value. Consumer welfare and wider social impacts alongside profits will constitute key metrics by which performance is measured. This is only appropriate, as maintaining public’s trust and confidence is a good business strategy.

More than ever, corporations’ fortunes and survival are now more closely linked. New realities require new paradigms. Co-opetition. How we cope with the new realities will depend on our ability to re-set our minds and leverage on networks to create value; at the customer, the firm, and at the system levels. There is enormous potential in re-defining strategies in competition and cooperation. Imagine the possibilities that could be achieved with strategic investments in shared infrastructure and the ability to share data securely across individuals and entities. We could significantly reduce costs, improve access, deliver superior customer experience which was previously not possible, with the network of shared information, better management and improved resilience against risks. 2/5  BIS central bankers' speeches  A new paradigm on stability It has been 10 years since the global financial crisis. The global insurance industry is now on stronger and more stable foundation. Industry leaders and supervisors may be satisfied with what was achieved since then, but there is certainly no room for complacency. Achieving stability objectives will become more challenging as the complexities of risk identification increase. We know that insurance companies can create systemic risks, even though we may differ in our views over the intensity of such risks. There is a ‘constructive tension’, arising from the need to significantly strengthen regulation and supervision while balancing the need for growth, development and innovation. In a world characterised by fierce competition, complex product offerings and evolving customers’ needs, there is always the risk of administering excessive and complicated regulations.