of energy and nonenergy commodities, as well as large movements in the exchange rate for the canadian dollar. and these movements have in turn triggered important shifts in economic activity, as well as reallocations of production resources across sectors and regions of the country. all of this underscores the fact that we live in an era of rapid change, and we operate in a global environment that is constantly shifting. uncertainty, risks, and shocks are constant features of the economic landscape. for canada, it is particularly important that we recognize this reality, given how open our economy is to international trade and capital flows. the best approach to dealing with risks and sudden developments is to constantly ask ourselves what steps we can take to make our economy and domestic markets more flexible, and thus better able to adapt to changing circumstances. and we need to recognize that this is a shared responsibility among firms, workers, and policy makers. firms and their workers need to be able to respond quickly to technological advances and to shocks that require changes in the way they conduct business, the kinds of goods and services they produce, and the markets they choose to develop. a well - functioning marketbased economy that sends clear relative price signals is critical in this context. at the same time, policy - makers need to be wary of barriers to adjustment, such as labour regulations that inhibit the movement of workers from one type of job, or from one sector or region, to another. to enhance flexibility, to raise the growth potential of the economy, and to increase its resilience to shocks, we need policies that encourage structural reforms. for canada, structural reform has a broad context, with priorities across a number of jurisdictions. the financial system, with its vital role in supporting a healthy modern economy, has been and will continue to be one priority. an efficient and sound financial system enhances overall economic flexibility by helping to redirect capital and resources to the most productive uses, in a cost - effective way, following a shock. removing internal barriers to the free movement of goods, services, and labour is another priority. these barriers are rightly attracting attention in canada as differences in regional economic performance and shortages of skilled labour are becoming more pronounced, and as demographic challenges intensify. a number of initiatives to remove internal barriers have been undertaken over the years, but with mixed and generally modest results. the red seal program was introduced more than 45 years ago to help standardize and recognize workers'trade qualifications. the agreement on

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