Risk-sharing mechanisms in takaful, which entail greater participation of consumers in the scheme with possible rewards in the event of no claims, will appeal to many. The underlying mutuality principle allows for exploration of innovative business models that can constructively disrupt the existing risk-transfer modality. Value-adding services that complement the takaful offerings should also be optimised in designing solutions that are compatible and meaningful for consumers. The initiative this year to expand the application of value-based intermediation (VBI) to takaful is a positive step forward for the industry to promote good value solutions. The takaful industry in Malaysia has established the Task Force under the oversight of the Malaysian Takaful Association (MTA), to spearhead this development. Intuitively, we would already expect that takaful is consistently aligned with VBI. Nonetheless, we will be looking forward to the stewardship that the takaful industry can offer in innovating impactful financial protection solutions and developing framework of business practices that are solidly grounded in fairness and incorporate sustainability principles. Secondly, the takaful industry must optimise the use of technology and digital infrastructures to provide premier service quality to consumers. Globally, we do see the insurance and takaful sector as one of the sectors that can benefit the most from innovative technologies such as data analytics, robotics, artificial intelligence (AI), blockchain and cloud computing. App-based insurance platforms which leverage on AI have been established to identify interests of consumers in providing niche coverage.

Economic research can contribute significantly to this, and in this context, some fundamental questions need to be addressed. – First, what is the macroeconomic impact of financial regulations? A greater understanding of how financial regulations act at the aggregate level is needed, both in containing systemic risk and in affecting the growth potential of economies. This would enable us to make more informed policy recommendations. – Second, how should systemic risk for banks, non-bank financial institutions and markets be identified and measured? Economists have proposed several methods of measuring systemic risk. But more research is needed in order to understand systemic risk arising from banks and non-bank financial institutions and their interaction. – Third, how should monetary policy be conducted in the context of macroprudential policy? And there are many more questions, some of which will be discussed during this workshop. We are eager to learn from the expertise and the experience of other countries. Norges Bank is committed to investing in research and supporting cooperation with other central bankers and foreign academics. This workshop is one product of this commitment. We are fortunate to have such prominent speakers contributing to the program. I wish you fruitful and stimulating discussions, and I hope you enjoy your stay in Oslo. Fortunately, the weather is on our side, motivating us to stay focused on our work. It would have been more difficult on a sunny day in June. 2  BIS central bankers’ speeches