jacqueline loh : managing risks in an uncertain world keynote address by ms jacqueline loh, deputy managing director of the monetary authority of singapore, at the 13th singapore international reinsurance conference, singapore, 3 november 2015. * * * opening distinguished guests, ladies and gentlemen, good morning. it is my pleasure to join you today at the 13th singapore international reinsurance conference. i believe the theme of this year ’ s conference, “ managing risks in an uncertain world ”, is one which will resonate with many of you, as insurers, reinsurers and brokers alike navigate the crosscurrents in the reinsurance industry, in search of profitable growth and better returns. in keeping with the conference theme, i would like to share a few observations on how the singapore insurance industry can capitalise on the opportunities created by new risks, new client segments, and new markets in asia. too much capital finding too little risks those of you who attended the recent monte carlo rendezvous would have discussed extensively the challenging conditions in the current reinsurance market, which some have warned would be the “ new reality ”, or the “ new normal ”. we have seen how structural responses – winning market share from competitors, and bulking up through acquisition of rivals – are largely built on a zero sum game. this becomes a problem when the pie is not growing, as could be the case if the industry does not innovate and create uncontested space. indeed, the combination of sluggish economic growth globally and continuous expansion of alternative capital have led to too much insurance capital finding too little risks. these include traditional risks like property and casualty risks. at the same time, the insurance sector is struggling to find solutions for new and emerging risks. this confluence of structural changes across demand, intermediation and the supply side of the insurance value chain is an unprecedented phenomenon. but the outlook is not for all grey skies ahead. the challenges also present a unique set of profitable growth prospects for the industry, particularly here in asia. asia ’ s changing risk landscape the asian risk landscape is changing rapidly, with demand for insurance services projected to grow especially quickly in emerging asia as incomes rise, life expectancy increases, and asians become more aware of catastrophic risks. asia currently accounts for 28 % of the global insurance market, and premiums in the region are expected to double by 2020, with more than us $ 1. 3 trillion generated. so why is excess capacity not being deployed in asia which

we are proud to be home to aon ’ s analytics and innovation centre and metlife ’ s recently launched lumenlab. to be unveiled later this year in singapore are aia ’ s edge lab, aviva ’ s digital garage and axa ’ s data innovation lab. this dynamic mix of insurance brokers, life insurers and composite insurers bear testament to the vibrant and conducive innovation ecosystem here, supported by a strong fintech community of start - ups and research institutes. besides improving the efficiency of the insurance sector, i am heartened that they are actively exploring opportunities brought about by new technologies. this is an important step towards unlocking untapped insurance solutions and markets, and will go a long way in managing risks in this uncertain environment. to reinforce this fintech ecosystem and as part of our broader efforts to modernise the insurance marketplace, we are supporting the establishment of an electronic reinsurance trading platform to enhance the efficiency of trading risks electronically. new risk management and insurance major as the industry seeks out profitable growth and new horizons, it is critical that the right talent and skills are available to support this. in the face of new and emerging risks, as insurance roles evolve and become more complex, different and deeper skillsets will be essential. skillsets will also need to be widened as technology and financial services converge. to this end, i am glad to announce that the nanyang technological university will be launching the risk management and insurance major next year. bis central bankers ’ speeches beginning in august 2016, this new insurance major will be structured as a major specialisation under the ntu business degree. it is expected to produce 50 new graduates every year starting from 2018, providing a strong and sustainable talent pipeline to support industry growth. alongside a robust curriculum, the students will get to build up their research, analytical and modelling capabilities, through working on research projects like the nat cat dax and cyber risk test - bed. conclusion insurance will continue to increase its relevance in an uncertain world. in these times of new risks, capital and technology, it is not sufficient to rely on a red ocean strategy. we need to open new horizons, and open them together. mas will be a partner of the singapore insurance industry as you forge a blue ocean strategy, manage risks and capitalise on the opportunities in the new reality. thank you, and i wish all of you a successful conference and a productive time at the sirc and in singapore. bis central bankers ’ speeches