intended to produce graduates that can be entrusted with positions of responsibility in the industry over the long term. this was the idea behind the formation of fstep and we need to bear this in mind when devising the syllabus and enhancement in the future. the quality assurance committee was created based on the thinking that a dynamic and relevant programmes requires continuous and timely revision. the qac that had developed the new syllabus incorporated valuable inputs from the industry. the new syllabus was approved, by the fstep steering committee on june 28, 2010. under the revised syllabus, the programme design and delivery will be more balanced between classroom - lectures and experiential learning in the form of case studies, role plays and simulations. this methodology is better suited for adult learning and shift somewhat the responsibility of learning to the trainees. with this in mind, the content and details of the programme will be regularly updated and align with the progressive development of the financial industry. it will keep participants abreast with market needs in this age of advance technology and knowledge. as the financial services industry matures and the lines between businesses become even more blur, the skills and talents needed to navigate the industry becomes even more diverse and demanding. the change in syllabus and other enhancements will differentiate fstep from other training programmes offered by the financial institutions and training institutes. so i don ’ t expect fstep syllabus to converge with the training programmes offered by individual financial institution. in order to ensure fstep secures a constant flow of quality graduates from both local and foreign institutes of higher learning to its training programme, initiatives have been mooted by fstep to sign a memorandum of understanding ( mou ) with all public universities and a few reputable private universities in malaysia to instill the way for greater cooperation and collaboration in matters of mutual interest and benefit. in particular, fstep will offer scholarships to eligible top graduates from various universities to participate in its one - year fast - track training programme. i wish to congratulate fstep for the successful effort in designing a new syllabus and it continuous effort to improve the fstep programmes remain contemporary and relevant agreed to by all parties within the financial services industry. more importantly, it is my hope that fstep will continue to produce the quality of graduates that will meet the needs of the industry. i hope that all of you will have a fruitful discussion and dialogue. on

transformation, and building resilience to withstand future shocks and economic cycles. as we turn our minds to these goals, the question before us is : how should the insurance industry in east asia, in the period ahead, respond to these demands? in envisioning the future direction of the industry in our own region, it would be constructive for us to reflect on the evolution of the modern insurance industry and contextualise it to our own prevailing and prospective environment. the modern insurance industry came with the maritime expansion which accompanied cross - border trade activity, and the rapid urbanisation which saw significant human and economic losses experienced during the great fire of london. this led to the establishment of the first fire insurance company and the invention of the building blocks for life insurance as we know it today. then, as societies became more affluent, endowment and with - profit policies grew in significance as instruments for savings. as industrialisation and urbanization intensified, the break down of traditional systems of social protection prompted the expansion of insurance products that covered retirement, accident, medical care and unemployment. throughout the 20th century, business models have continued to evolve in tandem with the higher levels of financial literacy, rising consumer expectations and advancements in bis central bankers ’ speeches technology. as competition compressed margins, there was a migration beyond tied - agency and commission - based distribution models to include fee - based financial advisors and direct marketing. bancassurance and the participation of retailers in insurance distribution have also allowed insurers to significantly expand their reach with lower cost structures, while specialisation along the value - chain enabled even greater efficiencies. this more diverse landscape has enabled a much wider and deeper penetration of insurance in the advanced economies. while these trends are shaping the evolution of the east asian insurance industry today, several other factors also need to be taken into account. first is the much faster pace at which these forces of change are taking place in east asia. second is the significantly more demanding regulatory environment in which insurers now operate. and third is the impact of climate change. this thus calls for a greater urgency in responding to these developments. allow me to elaborate on these factors given their potential to have an important bearing on the industry ’ s focus and priorities in navigating its future growth path in the region. on the first point, the growth trajectory for the demand for insurance products and services in east asia over the medium term will be much higher than the path that history implies. the global volume of cross - border