##ping a representative ’ s sales targets and sign - on incentives in the first year after the representative joins the new fa firm. this reduces the pressure on representatives to engage in 4 / 5 bis central bankers'speeches aggressive sales tactics to meet inflated sales targets ; ( b ) spreading sign - on incentives over a minimum period of 6 years, to create longer - term alignment between the representative and his new fa firm. this will foster better quality aftersales services to customers ; ( c ) reducing the entitlement to sign - on incentives if the persistency of the policies serviced by the representative at his previous firm falls below industry norms, to deter improper switching ; and ( d ) requiring the fa firm to undertake enhanced monitoring of its representative ’ s sales transactions to verify that the sales and advisory process has been properly conducted, which will include customer call - backs conducted by an independent external party. within the industry, revenues and growth must be driven by strong value propositions to your customers and not by sheer aggressive recruitment and sales tactics. more fundamentally, an insurance company ’ s long - term success must be built upon a strong risk culture and good corporate governance. an emphasis on ethical behaviour must permeate dayto - day practices. boards and management should set the appropriate tone from the top, and demonstrate a collective determination to walk that talk. recognition and reward systems should match the espoused values of the firm. conclusion let me conclude. the insurance sector will not be immune to the innovations and disruptions around us. at the world economic forum, present times have been described as the fourth industrial revolution. this will bring both opportunities and challenges. i have described some of these in my remarks. i know that all your firms are putting in place it and business strategies to ride the technology wave including those aimed at up - skilling your people. in progressing, we must be reminded that insurance is a social good and not a mere financial or economic activity. apart from the imperative for doing well, it is important for the industry to be guided by a moral compass pointing firmly to doing right and doing good. may i wish one and all a belated happy new year of the dog. 1 the global insurance protection gap, the geneva association, 2014 2 2012 protection gap study – singapore, life insurance association of singapore, 2012 3 spotlight on distribution in asia, swiss re – limra, 2015 4 insurance and technology : evolution and revolution in a digital world, morgan stanley and bcg, 2014 5 /

economic growth, the current account and inflation 1990 - 2004 % % inflation ( right - hand axis ) economic growth ( left - hand axis ) - 3 - 6 - 9 - 12 current account, % of gdp ( left - hand axis ) 1991 92 93 94 95 96 97 98 99 00 01 02 * 03 * 04 * 1. estimate for 2001 - 2002. central bank forecast for 2003 - 2004. sources : statistics iceland and central bank of iceland. forecast the nominal effective exchange rate of krona january, 2000 – april, 2003 desember 31, 1991 = 100 inflation target adopted in march 2001 exhange rate fluctuation limits ( abolished in march 2001 ) | | | 2003 source : central bank of iceland.