Digital and IoT ecosystems can be game changers, but these applications must be designed with a consumer-specific focus. As a start, there is a need to reinvent the claims journey by addressing prevailing pain points arising from manual processes and lengthy investigation timelines, especially for motor claims. The Bank will continue to pave the way for insurers and takaful operators to digitalise the claims process. However, we also expect and support the industry's collective efforts to improve existing infrastructures for a more integrated, transparent, and seamless journey as a precondition for full liberalisation of motor tariffs. This includes rolling out a digital roadside assistance solution that will serve as a catalyst for further modernisation of the claims journey. Beyond reinvention, we should also explore opportunities to connect digital ecosystems with novel product designs to increase claims efficiency. An inspiring example is how we can automate the payout journey with wider applications of parametric insurance. In contrast to traditional insurance or takaful, parametric contracts give greater certainty and allow money to reach policyholders faster through near-automatic payment. 3/6  BIS - Central bankers' speeches  According to a U.K. study by the Department of International Development, payments from a parametric insurance policy can be 3.5 times more effective in disaster response than delayed payments from aid 4. For victims, this speed can have a decisive impact on livelihoods. While parametric insurance plays a predominant role for natural disaster risks, I believe there is potential to apply this concept to more traditional protection needs in Malaysia.

With no shortage of recent examples of financial institutions that have flirted with questionable conduct, it should also be very clear by now that involvement in illegal activities is fundamentally incompatible with the trust the public expects. Compliance in partnership with others In today’s world, no one has a monopoly on knowledge, power and competence. It is not solely the job of the regulator to ensure the integrity of the financial system. The industry needs to be an active and responsible partner. All parties have a stake to ensure that the system is not only functional, but thriving. Bank Negara Malaysia will continue to remain firm in ensuring the orderly conduct of the financial system. We expect financial institutions to adhere to strong compliance and corporate governance standards. We have not hesitated to impose hefty fines when circumstances warranted such actions. Between 2015 to June 2017 a total of RM115.8 million of fines and penalties were imposed for breaching our regulations and affecting the integrity of the financial system. Moving forward, effective January 2018, the Bank will publish enforcement actions taken against financial institutions and intermediaries for non-compliance with rules and regulations. This aims to further increase the impact of enforcement actions as a credible deterrent. We are also working in partnership with the industry and other agencies to ensure that the integrity of our financial system remains intact. For example, over the last three months, a total of 415 names of individuals who were involved in facilitating financial scams was shared among the industry players.