model, microinsurance / takaful could become commercially viable, profitable and sustainable. based on microfinance information exchange market data ( 2009 ) by cgap, the data for microfinance providers ; profit margin 8. 43 %, return on assets 1. 5 % and return on equity 7. 27 %. microfinance or microbusiness will be profitable if the pricing is right, the portfolio size appropriate and strong risk management practices are put in place. on its part, the bank will issue a microinsurance / takaful regulatory framework to facilitate the provision of commercially sustainable micro products whilst offering protection to consumers. we have held dialogues on this, which i hope would lead to a positive outcome in furthering microinsurance / takaful as a significant business venture going forward. it is timely for industry players to review relevant methods as well as approaches in repositioning their value propositions to attract this segment of the population. a first major step forward that bis central bankers ’ speeches could be taken is to collaboratively launch nationwide awareness campaigns to promote the benefits of microinsurance / takaful to the public. the bank stands ready to provide appropriate avenues of support in rolling out this agenda. evolve in tandem with customer ’ s preferences and assist customers in the decisionmaking process industry players that can offer guidance to their customers will set the building blocks for developing long - term relationships. this is especially true in life insurance, where policies bought represent a long - term commitment. the industry needs to quickly comprehend changing customers ’ preferences and shoulder the responsibility of inculcating responsible consumer behaviour by expanding and deepening the scope of customers ’ education and awareness. through greater understanding of the respective responsibilities, disputes and potential conflicts could be minimised. balancing profitability with serving the needs of customers for long - term sustainability industry players that focus on short - term gains will not achieve long - term sustainability. the traditional view that the sole purpose of business is to make money the more the better is no longer a tenable view today. institutional logic now dictates that companies are more than instruments for generating money ; the value that a company creates should be measured not just in terms of short - term profits but also in terms of how it sustains the conditions that allow it to flourish over time. what this means is that industry players today should not be fixated solely on generating profits but rather investing in relationships with their customers. if the industry can meet the needs of its

of capacity building measures undertaken ever since the bank took over as the regulator for the industry. the capacity of the industry has improved significantly. however, many issues still plague the industry today. issues such as fraud, theft, lingering claims in court and delay in settlement of claims are some issues we need to tackled. if these issues are left unresolved, the image of the industry will be severely dented. in charting the way forward, two imperatives in capacity building are worth thinking. one, we need a pool of high - calibre leaders who are equipped with the right skills to resolve challenges and sustain the momentum of the industry ’ s progress. also critical is the creation of an efficient system of succession planning to groom future leaders that will take the corporation and the industry to the next level of progress. two, is for leaders to be supported by a team of dedicated and diverse talents. the leaders of tomorrow would most likely face challenges that are much more challenging than what we had faced before. they need to be flexible and adaptable to the new operating environment, bis central bankers ’ speeches new business regulation and able to communicate well. the issue confronting the industry however is in attracting the right talents who are committed to make insurance and takaful a career of choice. talent is a scarce commodity. the industry needs to be competitive in its remuneration package. the salary package at the entry level must be attractive enough to get the right talent. the financial services sector is not the only competitor for the insurance and takaful industry but other sectors within the economy as well. while the financial aspects are important, we should inspire our young recruits on the underlying values of the industry and capitalise on the noble objective of providing protection and managing risk for our people. takaful for example, is built upon the spirit of brotherhood, solidarity and mutual assistance which provides for mutual financial aid and assistance to the participants. drawing talent that shares the same values will ensure commitment and support talent retention in the industry. when the general public interact with the industry, with highly motivated staff, it will sow confidence and consequently trust. refrain from making false promises, make clear the terms and conditions up front in building trust, a huge responsibility lies now on intermediaries playing their role, as intermediaries ’ behaviour mirrors the image of the insurance and takaful industry. many consumers are not well versed with insurance and takaful terminology and will rely on the advice rendered and the full disclosure