. • we have set up the cyber risk management project in singapore. it was launched recently, involving the nanyang technological university ’ s ( ntu ) ’ s insurance risk and finance research centre ( ntu - irfrc ), and supported by leading industry players and the cyber security agency ( csa ) in singapore. conclusion 42. it is, to conclude, a difficult and challenging environment for insurers globally. we have to live with a low interest rate environment for a long time to come, even as our societies are getting older. it ’ s a challenge for everyone in the retirement business, including insurers. we have to find ways to make savings for affordable for ordinary savers as they prepare for their retirement. 43. but we also have to meet new opportunities in the insurance industry. asia is growing in every segment of the insurance business, but i want to highlight the importance of infrastructure financing as an opportunity for insurers, as a way in which you can play a useful role in the economic growth of the region. i also want to highlight the criticality of catastrophe insurance and cyber insurance. public - private collaboration is the way to go in all these areas and i ’ m glad we are off to a good footing in our relationship with industry leaders, and in tying together collaborations with the academia and research institutions. when we next meet three years from now in singapore, we should be in a slightly better place. bis central bankers ’ speeches

ravi menon : protecting asia from natural catastrophes opening address by mr ravi menon, managing director of the monetary authority of singapore, at the institute of catastrophe risk management symposium, singapore, 3 august 2017. * * * professor bertil andersson, president of nanyang technological university, professor pan tso - chien, executive director, institute of catastrophe risk management, ladies and gentlemen, good morning. i am happy to join you at the 8th icrm symposium. a widening protection gap asia has a serious problem. the frequency and severity of natural catastrophes hitting the region is increasing. according to un data, the number of natural disasters in the asia pacific has increased from an annual average of 44 disasters in the 1970s to 146 in the 2000s. we don ’ t need much reminder of the tragic natural disasters that the people in asia have suffered in recent years. the indian ocean tsunami in 2004 ; the tohoku earthquake in 2011 ; the thailand floods also in 2011 ; and super typhoon haiyan in 2013. as asia continues to grow rapidly, more lives, wealth and assets in asia are correspondingly at risk from natural catastrophes. growing urbanisation also means that wealth in asia is increasingly concentrated in small, overpopulated megacities. there are 22 mega cities in asia, each with more than 10 million inhabitants and hosting important commercial, manufacturing, and logistics hubs. many of these cities are located in the philippines, china, japan, india, indonesia, and bangladesh, which are highly exposed to natural perils. in asia, insurance protection against natural catastrophes has not kept pace with economic development. there is a significant protection gap. over the last 20 years, asia has accounted for almost half the world ’ s economic losses from natural disasters, amounting to more than us $ 900 billion. yet, less than 5 % of economic losses in developing asia were insured, compared to 40 % in developed countries. this means governments in asia have had to finance the cost of recovery by raising revenues, issuing debt, or relying on donations from abroad, on an ex - post basis. this is not sustainable, and comes at the cost of economic development. insurance can and should play a bigger role to reduce the financial impact of natural disasters and improve disaster resilience. insurance not only provides emergency relief post - disaster. more importantly, it is an ex - ante risk financing solution, as part of a comprehensive disaster 1 / 4 bis central bankers'speeches risk reduction strategy. asia needs