on the right issues that will move the industry forward and expand the opportunities for growth. it should take an assertive and expanded role in aligning the interests of different stakeholders towards a common purpose, and it should deal firmly with any party that attempts to distract the industry from this purpose. this of course would call for a strong leadership, a strong conviction and desire to act in the long term interests of the common good. it was said that insurance business is about promises and trust. but its more than that. it is about delivering to the customer in their times of need. it also about delivering value to the promises we made. its about fulfilling and exceeding the trust the policyholders placed on us. these principles are enduring and with infinite timespan. i hope that these principles would guide liam as the industry chart its a new path into the future. on behalf of the bank, it gives me great pleasure to congratulate liam on this occasion of its 40th anniversary. much has been achieved, much more still remains to be done. i have every confidence that the industry will rise to the occasion and throw its full support behind liam in navigating the road ahead. on its part, the bank will continue to work with the industry in achieving the smooth implementation of reforms proposed for the industry. as expectations of liam increase with the evolution of the industry, i trust liam shall continue to reinvent itself to remain relevant and effective. with the world changing in profound ways and sometimes in a manner that confound us, this is the time for the insurance industry to assert its relevance and provide solutions to the challenges that confront our society. bis central bankers ’ speeches

muhammad bin ibrahim : brief overview of malaysia ’ s insurance industry welcoming speech by mr muhammad bin ibrahim, deputy governor of the central bank of malaysia ( bank negara malaysia ), at the life insurance association of malaysia ’ s 40th anniversary dinner, kuala lumpur, 21 november 2014. * * * i am pleased to be here to celebrate the life insurance association of malaysia ’ s 40th anniversary dinner. i notice the presence of a number of senior and veterans who have previously served in the industry, as well as the next generation of leaders who shall bring the malaysia ’ s insurance industry to the next level of excellence. over the course of 40 years, the insurance industry has seen significant development and progress. many of you present here join me in bearing witness to the important strides that have been made to bring the industry to where it is today. these achievements go well beyond the individual successes of any one company, any one individual. the most significant milestones were accomplished through the collective vision of the industry coming together to lay the strong foundations for future growth. the association has been instrumental in this process, working closely with the bank since we assumed the regulatory function of the insurance industry from the ministry of finance back in 1988. industry ’ s achievements today, the life insurance industry contributes 2. 8 % of malaysia ’ s gross national income ( gni ), with premiums totalling rm26 billion in 2013. more than 18, 000 are employed in the industry. the life agency force has grown to about 80, 000, with more of them earning higher average incomes as they pursue professional careers as full time insurance agents. the industry is on a strong financial footing with excess capital of rm23. 5 billion, above the regulatory minimum capital requirement. expense rates have declined from 41 %, prior to the introduction of the guidelines to control operating cost of life insurance business, to 26. 3 % in 2013, representing significant efficiency gains that have created a more competitive industry and improved value for policyholders. most importantly, the life insurance industry has continued to innovate through new products and distribution channels, providing individuals protection against financial risks and help them meet their financial goals, whether for education, retirement, or to pay for medical expenses. in 2013, the industry paid out over rm16 billion in benefit claims to policyholders under various life insurance policies. the life insurance has contributed to the betterment of the health and malaysian in general. the life insurance industry has also had a key role in the development of malaysia ’ s