dependent on insurance and takaful companies building strong internal underwriting and risk pricing practices to ensure the sustainability of the business, particularly in the highly competitive motor insurance segment. let me re - emphasis the importance this development to our market and the criticality to remove the current market distortions that undermine the long term sustainability of motor insurance. the industry cannot afford to take a short term view ; it must keep its sights on building the foundations for operating in a more diverse and mature market, with stronger value propositions for consumers. presently, with the high volume of vehicles referred to by the industry, the malaysian motor insurance pool has a life of its own and i was told the mmip is the 9th largest general insurer in malaysia. this was never the intent. let ’ s revert to its original mandate as a mechanism to insure the highest risks motor vehicles. in tandem with these developments, insurers and takaful operators must be fully accountable for the conduct of their intermediaries in ensuring that customers receive proper advice and quality service throughout the duration of the policy. it is important that adequate training is provided and the right remuneration and incentive structure is implemented to promote a committed and professional agency force. with this expectation there is increased demand for a full time and professional agency force. conduct issues are viewed seriously by the bank and we are fully committed to the responsibility entrusted to the bank to effectively enforce regulatory requirements on fair conduct towards consumers. the financial services act provides the bank with explicit and expanded enforcement powers which include monetary and non - monetary actions. in addition to private and public reprimand as well as direction to make restitution to aggrieved parties. as a result of supervisory interventions by the bank, more than rm30 million in premiums were refunded to the affected policyholders due to mis - selling practices in the sale of life insurance products in the past. bis central bankers ’ speeches the bank had also directed insurers to refund the premiums in more than 700, 000 cases involving the forced purchase of personal accident policies. in addition, insurers have been directed to modify or withdraw misleading advertisements, make call backs to consumers to confirm the products purchased without adhering to proper disclosure practices, as well as strengthen internal controls over sales and marketing practices with respect to bancassurance products. the enforcement measures undertaken signals the bank ’ s low level of tolerance for misconduct. it also serves to remind the industry of the bank ’ s

##uity products. despite this, response from the insurance industry is lethargic at best. the industry ought to improve product design and delivery channel to benefit from the tax incentives given by the government. with the more challenging economic conditions that are confronting our societies, there is also a broader educational imperative that needs to be met. the industry should come together to aggressively raise awareness on the importance of retirement planning, and to help consumers understand and purchase retirement products. i believe more opportunities can be tapped if the industry could collectively work on this matter. the need is urgent. it is time for the industry to come together and make a more significant impact through wellplanned investments in product design, risk management and to support consumer education in retirement planning solutions. third, catastrophic events in asia pacific is rising. the region is also confronted by an increasing frequency and severity of catastrophic events. eight of the 10 countries in the world with the highest annual natural catastrophe losses as a percentage of gdp are located in asia. over the last 20 years, natural catastrophe losses suffered by asia accounted for almost half of the world ’ s estimated economic losses from natural disasters, yet only 7. 6 per cent of such economic losses in asia were insured compared to 67 per cent in the united states for example. these significant protection gaps that are prevalent across most of asia and expose the vulnerability of the population and economies of the region to hardship due to loss of lives and damage to properties following a catastrophic event. the poor are most severely affected. while some countries have implemented disaster - risk insurance schemes or provide government assistance to alleviate such losses, others continue to be exposed. in response to this challenge, more is being done among developing economies, including under public - private sector partnerships, to develop and increase access to affordable micro protection plans as a means of helping millions of people cope in the most difficult times. strategies to seize opportunities in the new horizon allow me now to turn to some of the key strategic imperatives for the industry going forward. bis central bankers ’ speeches first and foremost is the building of strategic and quality human capital. human capital can be likened to the indispensable crew that you need for your ship to sail. shortage of quality talent is one of the most important risks facing organisations globally today and the insurance industry is no exception. the malaysian insurance institute, like many other insurance training institutes around the world, ought to expand investments in personnel with the relevant skills and knowledge in particular the ability to adapt and innovate.