In the current state of constant change, building the capacity of supervisors is one of the most critical priorities to guard against threats to stability without impeding growth and innovation. Finally, we need to create room for experimentation. While rules are not meant to restrict innovation, they often have the effect of doing so. This might end up leaving customers worse off, 4/5  BIS central bankers' speeches  and insurers exposed to higher business risks than necessary or appropriate. When faced with the stark choice of doing nothing and risking harm to public interests, or writing rules to control something that we do not yet fully understand, it is only sensible to experiment and learn from it. This point is also crucial, when technology offers so much potential to increase financial inclusion. Platform-based solutions and insure-tech companies are opening up insurance access to large segments of the population at a fraction of previous costs. To fully benefit from such possibilities, some regulators have adopted “regulatory sandboxes” to test solutions and design regulations that are appropriate. There will no doubt be other approaches taken to experiment and innovate. And when things do not work, we must be prepared to change tactics and strategy. Conclusion Over the last few decades, the global regulatory community has come together to build stronger supervisory systems and more resilient markets. Insurers have built extensive networks in their pursuit of growth.

It is an interesting theme. It is even more interesting if we look at the insurance industry from a broader perspective, from the angle of economic development. Beyond issues of safety and soundness, my experience suggests that we ought to have a keen interest in the development of an effective and efficient insurance market, that serves the advancement of broader goals, from the provision of healthcare, to building resilience against natural disasters, supporting trade, enhancing social security and providing the opportunity for people to improve their livelihood. Insurance is a great invention, one of those inventions that touches people’s lives. Long before “big data” became in vogue, insurers have effectively used data to turn unknowns into knowns, and perils and hazards into opportunities. The concept of pooling funds to assist the unfortunate and those faced with adverse situations is a very noble idea. From air travel to the launching of satellites, insurance innovations have enabled many of mankind’s greatest feats, propelling civilisation forward. Innovations in micro-insurance have helped protect our most vulnerable communities from devastation. Today, drones are being used to inspect property damage claims, and machine learning to detect fraud. Indeed, the industry has enabled trade to flourish, serving as the bedrock of modern economies. Despite these remarkable developments, the world continues to face immense economic, environmental and social challenges. The effects of climate change are real, leaving horrific damage and destruction. Economic losses in the aftermath of this year’s hurricane season in the Gulf of Mexico is estimated to reach up to $ billion.