, the bank will continue to involve all stakeholders particularly the industry for better appreciation of new policies introduced. the insurance industry is expected to continue its positive growth momentum in the near term. growth in the life sector should continue to receive support from the encouraging demand for savings and investment - driven products such as endowment and investment - linked insurance. the increasing awareness among the consumers of the importance of risk protection, relatively low penetration level and large mortality protection gap also underpin strong future growth opportunities for life insurers in the more traditional risk product lines such as term ( including credit - related term ) insurance. also contributing to the growth opportunities for risk products is the growing preference among the more sophisticated consumer segments for unbundled investments and protection solutions which offer greater flexibility with investment choices, without affecting protection levels. amidst these prospects and as the financial services industry transitions to a more deregulated and market - driven environment, the regulatory and supervisory approach will continue to evolve into one that is more principle and risk - based, providing greater operating flexibility to insurers. in this regard, the proposed risk - based regulatory regime which includes the new risk based capital framework that is going to be introduced in due course is a move in this direction. this would further strengthen the incentives for improved risk management practices of insurance companies. the new requirement would also facilitate more efficient capital structures that are more reflective of the different risk profiles of individual institutions, whilst providing greater investment flexibility to insurers without compromising on prudential standards. such insurance companies would be well - positioned to reap the opportunities abound in the insurance market place. under this risk - based regulatory regime, the responsibility for the implementation of sound risk management and market conduct governance, as well as assessment of risks and management of the financial condition of an insurer, will increasingly rest with the board of directors and senior management of the insurer. this will ensure that the financial system is able to continuously adapt whilst maintaining a clear focus on sound risk management that will continue to be a critical pillar to support a resilient insurance industry. it will also enhance public confidence in the efficiency and performance of the financial system to contribute to the overall development of the economy. this approach is also a move towards a differentiated regulatory and supervisory approach whereby companies that demonstrate strong corporate governance standards and risk management practices will be accorded'lighter regulatory touch ', which implies that they will be given greater regulatory flexibility. this underscores the importance of capacity building by the financial institutions in

continuously updated and upgraded. at the macro - level, the breadth and depth of skills of the entire financial services workforce will increasingly be the defining factor in determining the success in building a more efficient, effective and dynamic financial sector. the availability of appropriately trained and competent human resources is a critical factor key to support the performance of the industry. in essence, continuous strengthening of intellectual resources and capabilities must be made to create a larger pool of talents and high calibre professionals in the banking and finance industry. competence and skills development have always been an area of focus, but it will be even more important as we prepare our workforce for a more challenging environment, one that is more competitive and more complex. the first step is to build the skills required at the tertiary level to ensure that the curriculum at our universities and colleges equip graduates with the relevant knowledge and skills that meet the needs of the industry. in this respect, closer cooperation between the industry's training institute and the academia will help to develop a new breed of graduates who will be much better prepared to enter the workplace. at the post - employment stage, we need incentives for continuous learning and upgrading of skills and an infrastructure that delivers the appropriate training. for the development of banking sector workforce, the international centre for leadership in finance ( iclif ) was established to pave the way for the development of future leaders in the industry, while institut bank - bank malaysia ( ibbm ) provides the avenue for competency building among the various levels of staff. with the onset of financial liberalisation, the traditional lines of business are likely to expand into new areas and new business models. as a consequence, the skills requirements have also evolved with the growing diversity and complexity of businesses in which banks are engaged, the increasingly sophisticated customer needs, technological innovation, and the expectations for sound risk management. in this context, there is a need to analyse the essential competencies for current job functions and to anticipate future skills requirements, with a view to building a competency framework for banking and finance that is relevant to the changing financial landscape. the development of an industry competency framework seeks to elevate the level of professionalism and competence in the banking industry through appropriate training and certification programmes. for banking institutions, the competency framework will serve as a source of reference and impetus in sharpening competencies of staff and enhancing organisational capabilities to meet future challenges. the framework could also provide a benchmark for performance measurement and recognition for skills improvement