We are home to: four of the top five global insurance players; a vibrant ecosystem comprising a strong brokers’ cluster where nine out of ten of the top global brokers are based here; the largest captive community in Asia Pacific; a growing concentration of more than thirty specialty players; and the largest grouping of Lloyd’s syndicates outside of London, with 26 syndicates. Reflecting the increasingly important role of non-life insurance in driving overall industry growth: The share of offshore non-life insurance as a proportion of total non-life insurance premiums has increased steadily, rising from 60% in 2010 to close to 70% in 2016. Over one-third of offshore premium flows are attributed to specialist lines of business, such as large and complex property, marine, construction and engineering, energy, financial lines and agriculture. Insurance companies are gradually anchoring more global and regional positions in Singapore, and most Asian risks, including large reinsurance programmes and specialty risks, can now be fully placed in Singapore. Singapore’s share of global Asia-Pacific originated reinsurance premiums has also risen from 3% in 2013, to close to 10% in 2016. 1/4  BIS central bankers' speeches  Vision 2025: Global capital for Asian risk transfer 6 So what next after this? 7 The global reinsurance industry continues to face structural challenges, in a few forms: Alternative capital, which gives rise to excess capacity and softening rates, is expected to persist. Insurance underwriting is not keeping pace with the rate of emergence of new risks, such as cyber, supply chain, and reputation risks.

3/4  BIS central bankers' speeches  26 To this end, I am glad to announce the formation of the Singapore-based infrastructure consortium for OBOR projects, with China Re Singapore as the administrator. The OBOR insurance consortium is envisaged to provide top-up capacity and specialised insurance coverage for OBOR projects in APAC ex-China, by bringing together Singapore-based insurers, reinsurers, and brokers who will contribute insurance capacity and provide risk management services for OBOR projects. 27 The OBOR consortium will initially focus on key lines of business that play to the specialty risk strengths of Singapore’s insurance markets, with a view to ultimately be a one-stop solution for both P&C insurance and other specialty insurance. 28 We will pilot the OBOR consortium with two lines of business: Construction; and Project Cargo & Liability. This is particularly relevant for Asia as industrialisation and infrastructure investments in this region will propel demand for insurance solutions to mitigate construction and project cargo risks. We have established a group of interested lead and follow markets in Singapore to offer coverage in these two lines. The markets comprise leading insurers, reinsurers and Lloyd’s syndicates operating in Singapore. We look forward to the industry’s active participation in this bold venture. Conclusion 29 Ladies and gentlemen, insurance is fundamentally about risk management. As the region around us continues to grow, the insurance industry can support this growth and development by creating relevant risk management solutions that can pave the way for a broader range of corporates and investors to participate in its growth.