the region. a research by lloyd ’ s has shown that a 1 % rise in insurance penetration translates to a 22 % reduction in taxpayers ’ contribution following a disaster. in order to expand the insurability of catastrophe risks in the region and bridge the protection gap, an innovative public - private partnership ( “ ppp ” ) approach is needed. to do this, the mas is supporting a natural catastrophe data analytics exchange ( nat cat dax ) for asia pacific. led by the ntu institute for catastrophe risk management ( icrm ) in collaboration with a * star and the industry, this common data analytics platform will enable industry to pool insurable claims data. more importantly, this platform will unlock new economic exposure and loss datasets through the use of new technologies such as satellites, remote sensors and drones. with a comprehensive and integrated economic and insurance database, this will form a strong data backbone for the industry to not only underwrite traditional reinsurance better, but also catalyse new product innovation, such as government pools, and alternative risk transfer products, which will push the boundaries of insurability further. today, it gives me great pleasure to announce the formation of the nat cat dax alliance, in collaboration with pioneer industry founding members mitsui sumitomo insurance group, renaissance re, rms and aon. i urge the industry to be a part of this collaborative initiative, as we partner together to increase the availability of quality data, enhance the underwriting process, and spur collective market analytics and innovation. new technology and innovation just as new disruptive technologies like 3d printing, autonomous vehicles, and the internet of things have emerged in various sectors of the economy, such technologies will similarly surface in the insurance industry. this will have an impact on all parts of the insurance value chain – product design, underwriting and distribution. • product design – while there is tremendous scope for enhancements in product design, the advent of new technologies and innovation could even render some existing offerings obsolete. for example, autonomous cars and their safety elements could leave some motor insurance products out - dated, if not irrelevant, over the next couple of decades. • underwriting – with big data and smart analytics, underwriting models will likely evolve to become more predictive and personalised, such as through the use of telematics to price motor premiums according to driving behaviour, or the use of wearables for a customised health protection plan. data analytics is not new to the insurance sector, which has had

, working closely with standard - setting bodies, put in place 1 / 9 bis central bankers'speeches over the last eight years a comprehensive set of regulatory reforms to address these fault - lines. the aim is to make the financial system less prone to crisis and more resilient in the event of crisis. there are three key thrusts. first, strengthening the banks. this is being done through the basel iii reforms, increasing capital buffers, setting liquidity requirements, and constraining leverage. second, making derivatives markets safer. this is being done through requirements for trade reporting, central clearing, and margining. third, tackling the too - big - to - fail problem. global systemically important financial institutions have been identified and are being subject to higher capital requirements, more intensive supervision, and resolution planning. evaluating the impact with the rule - making largely done and implementation generally making good progress, it is time to evaluate the impact of the regulatory reforms. the fsb is developing a framework to do this, focusing on two key questions : effectiveness – are the reforms achieving their intended outcomes? effects – what are their broader social benefits and costs of the reforms? this work is especially important in the current context. first, the regulatory changes of the last eight years are substantial, especially when taken cumulatively. it is incumbent on us as regulators to be accountable for these changes, to evaluate objectively their intended outcomes as well as any unintended consequences. second, with memories of the crisis fading and the compliance burden of new regulation continuing to grow, pressures have begun to mount to unwind some of the reforms. any adjustments to be made should be grounded in an objective assessment of the impact of the reforms. how effective have the reforms been? the preliminary assessment is encouraging. large banks are now stronger, more liquid, less leveraged, less complex. derivatives markets are safer, with central clearing covering more than 90 % of otc derivatives trades in 14 major jurisdictions. the financial system as a whole seems more robust and more resilient. the system has remained resilient through several episodes of market stress, ranging from the 2014 us treasury “ flash crash ”, and the 2015 swiss franc de - pegging to the 2016 brexit vote. what have been the overall effects of the reforms? work in this area is nascent, there are no clear answers yet. but let me sketch some of the key issues. in each of these areas, we are confronted with the problem