encik adnan zaylani mohamad zahid : the asean insurance industry - current state keynote address by mr encik adnan zaylani mohamad zahid, assistant governor of the central bank of malaysia ( bank negara malaysia ), at the 21st asean insurance regulators ’ meeting, 44th asean insurance council and 3rd asean insurance summit, kuala lumpur, 28 november 2018. * * * bank negara malaysia is honoured to host the 21st asean insurance regulators ’ meeting and the 44th asean insurance council meeting again after eleven years. it is also our privilege to be part of the 3rd asean insurance summit. i trust that the exchange of ideas and knowledge during these events will further strengthen the long tradition of close cooperation among asean insurance regulators and industry players, interventions, and initiatives to build resiliency and liquidity for our market. introduction since its formation in 1967, asean has achieved significant strides in advancing regional economic and financial cooperation and integration. this has contributed to sustained social development and stability that we see in the region over the last five decades. economic improvement has seen member states grow at an average rate of over 5. 3 % and expanded over 100 - fold, supported by significant intra - regional trade. in 2017, the ten - member states recorded a combined gross domestic product of close to usd3 trillion. together, the regional bloc is currently the sixth - largest economy in the world and by 2020 is forecasted to become the fifthlargest economy after the united states of america, china, japan and germany. with a population of just under 650 million, asean is characterised by its rising and expanding middle class. this segment will represent two - thirds of its overall population by 2030. increasing urbanisation, rising consumption levels and a young workforce are expected to drive future growth. this forms the backdrop that will boost intra - asean trade and investment. consequently, this will further propel the region ’ s journey to become a highly integrated and cohesive economy as envisaged in the asean economic community blueprint. current state of the asean insurance industry now, how has the asean insurance industry fared during this period and how will it perform going forward and how do we want it to perform? ten years ago, the asean insurance sector recorded a total premium income of usd41 billion, with total assets of usd185 billion. in 2017, the region recorded a total premium income of usd103 billion, with total assets of usd480 billion. nevertheless, the asean

insurers, too risky and likely unprofitable. we are taking a view that this is misplaced, and it will take proof to change this. currently, we are still finalising the details and targeting the scheme to be fully operational in early 2019. as insurance regulators, these emerging trends place new demands on our skill sets, expertise and competencies. we have seen the need to become more agile, pragmatic and experimental. we also need to be more open to new ways of formulating developmental policies and regulation. in this respect, we can learn from each other the evolving practices, environment and developments that we face in our respective markets. as a group, i believe asean regulators will continue to work closely towards achieving a consistent approach in driving the development of a holistic insurance ecosystem and infrastructure in the region. regular dialogues and exchange of information among and between 3 / 4 bis central bankers'speeches regulators and the industry will continue with new areas for collaboration, particularly in the management of risks and developments brought about by innovation. these include consumer data protection issues, rise of cybercrime, potential job loss or disruption, and rapid and unexpected climate change and natural disasters. closing this week ’ s asean events continues our commitment towards promoting continued development in the insurance sector. the challenge herein lies with ensuring that the asean insurance market has the capacity to reinforce the economic growth momentum and stand wellprepared against the evolving trends and risks. in doing so, we should never forget to uphold the highest standards of integrity, professionalism and ethics. 4 / 4 bis central bankers'speeches