focused on efficient management of risk and capital. mas is developing a regulatory framework for ils and will consult the industry in due course. development of more advanced risk management techniques has to be supported by more sophisticated research. for example, more reliable estimates of catastrophic losses will allow insurers to better price and write larger risks. for ils to be priced and rated, more robust risk models are needed. singapore is well - placed to serve as a centre for asian insurance research. we therefore encourage the industry to deepen its ties and collaboration with academia, and identify the relevant areas where greater research can make a difference. mas is prepared to consider supporting worthy projects financially. conclusion ladies and gentleman, the success of our initiatives to grow the insurance industry is contingent upon active participation from the industry. as new products are introduced and more players enter the market, there will be greater vibrancy in our insurance industry. there will be greater cross - fertilisation of ideas and upgrading of skills, which will underpin the continued growth of singapore into a thriving insurance marketplace. mas and gia have enjoyed an excellent working relationship over the years, and we look forward to many years of close and fruitful cooperation. it is our collective aim to continue to grow the vibrant insurance industry in singapore and to bring it to even greater heights. thank you.

we also want to encourage greater specialisation and new techniques in the industry, for example by having specialised service providers to support the industry, and by facilitating access to a wider variety of risk and capital management tools for insurers. let me share with you some ideas and initiatives we have to help catalyse such developments. insurance expertise and capacity firstly, regarding insurance expertise. the industry needs to accelerate its efforts to provide more regional and international exposure, and advance training across a broad range of business lines, to raise the level of technical competency and experience of its staff. the industry should take advantage of mas'financial training scheme ( fts ) which provides co - funding for training. such efforts should not be focused only on developing the existing talent stock, but also cultivating the talent pipeline. the insurance industry faces strong competition for intellectual capital from other economic sectors. hence, you need to raise the profile of the career in the insurance industry collectively, to attract the best and the brightest. with the right human capital, the industry will be better placed to capitalise on asia's growth prospects. there is also a dearth of underwriting capacity in the region for some specialised risks, for example aviation, energy, political and terrorism risks, to name a few. mas will explore ideas to enhance our competitiveness to encourage such risks to be underwritten in singapore. we welcome feedback and suggestions. specialisation and new techniques we recognise the importance of ancillary service providers within the insurance ecosystem, and believe that increased usage of specialised service providers can make our insurers more competitive. singapore's existing infrastructure, political and economic environment is conducive for such service providers to thrive in, and we will enhance the business case with initiatives to help reduce the cost of operating in singapore. examples of specialised service providers include run - off management and related services, claims management and processing services, loss adjusting services and policy administration services, amongst others. another new technique that can enhance insurers'competitiveness is insurance - linked securitisation, or ils. ils enables insurers to transfer risks to the capital market to strengthen their balance sheets. these securities also contribute to a more diverse and vibrant capital market. the global ils market saw a record level of issuance in 2005, and 2006 looks set to exceed 2005. while there are few ils deals sponsored by asian insurers, we expect to see more interest as insurers become increasingly sophisticated and