strengthen your value proposition to the customer. as one fintech firm tells me, the battle is won by whoever can provide a more delightful customer experience. at the same time, we should not forget to ‘ mind the gap ’, or gaps. as insurers delve deeper into the realm of smart tools powered by complex algorithms, artificial intelligence and machine learning, there is also a need to identify and address potential pitfalls of such capabilities. for instance, one particular concern in deep learning models is that the “ learning ” by the machine is a black box, which could lead to biased “ data truths ”. this in turn may produce decisions or outcomes that are unexplainable, non - transparent or even unfair. also, while big data enables finer segregation of risk, the concept of insurance is always premised on risk pooling. a careful balance has to be struck between segmentation versus the sharing of risk among policyholders, for insurance to retain its long term societal relevance. we should guard against automatic or blanket financial exclusion or embedded selection bias. there is also a need to safeguard individuals ’ right to privacy in the use of personal data. therefore, an emerging area of focus for mas will concern the ethical use of data by financial institutions. we will look to provide more guidance on the issues of fairness, ethics, accountability and transparency amidst this technology revolution. insurers are custodians of very large data sets, including personal information. we expect all insurers to have cybersecurity practices and controls that are aligned with our technology risk guidance and requirements. it is equally important for firms to have in place good cyber hygiene standards, and ensure that such good practices not just feature prominently in your it systems and policies, but are also embedded in day - to - day work processes. more broadly, how will mas, as a regulator, partner the industry in this transformation journey? let me first set out a few principles that guide our approach : firstly, mas is technology - neutral and will not seek to favour one technology over another. secondly, we take on a more principles - based approach where the focus is on outcomes – 3 / 5 bis central bankers'speeches whether a new business model or adopted technology will threaten financial institutions ’ safety and soundness, or the fairness in their dealings with the public. thirdly, we believe that regulations should support and not stifle innovation. innovations by their inherent nature will move ahead of rules. what we want to guard

to better outcomes for consumers. take for example, an ex - cancer patient who has beaten the illness into remission. normally, this person will find it very difficult to renew or take on new insurance. through better health data insights and more sophisticated underwriting capabilities, new products could be developed to bridge the insurability gap for this group of consumers. hence data science will have an even more important place for risk underwriters and actuaries. another potential innovation is in the use of blockchain or distributed ledgers to collect information or health records by linking the insurance provider with the customer and other intermediaries. these can also be used to minimise fraud risks and the need for back - and - forth information verifications. 2 / 5 bis central bankers'speeches apps in our smart devices can also change the ongoing relationship between an insurer and the insured. purchasing an insurance policy has traditionally resulted in a transactional relationship. after client on - boarding, the ongoing contact between the insurer and the insured is limited to premium payment and processing of claims. many people do not see a need to meet their insurance agents regularly to review their coverage. some, i am told, even shun calls from their agents. new insurance apps can transform the insurer - policyholder relationship into a broader partnership. the insured person can benefit from various lifestyle information, healthy living tips and other information, emerging trends, advisories on new products and various service options. these can include transactional services such as the option to buy additional insurance based on new needs – all done digitally. claims can also be an automated self - service process, with expedited settlement based on digital submissions of proofs. the use of chatbots can also support a customer by providing on - demand standard reports or for other procedural or contract information. i read that in some countries, new insurtech players now offer universal all - in - one “ plug and use ” insurance cover. they use ai - enabled insurance platforms that allow a person to key in his details – like his health statistics, occupation, business and personal travels, his car, family, home and home possessions, pets and so on – and get all the insurance that he needs under one policy that can be flexibly adjusted across the difference risk coverage over his life cycle. what this does is to make the customer experience more pleasant and fuss - free. it should be evident that insurers can and must leverage data and digitisation to