standards for solvency reporting. this will take into account the potential areas of alignment with international solvency and accounting standards. the results from the quantitative tests and feedback from industry engagement will be valuable inputs for these upcoming reviews. as you are no doubt aware, these standards are inherently very complex. as the industry prepares for them, there is a need to strengthen capacity and arrangements – both at the institution and industry levels – to support implementation. this includes ensuring effective organisation and coordination of technical work at the industry level through the actuarial and industry associations. the malaysian insurance institute also needs to further develop its capacity to support what will almost surely be an increase in demand for effective and relevant technical training in these areas. conclusion let me conclude. the insurance industry is no stranger to innovation. the history of insurance is a success story of innovation in action. one of the earliest application of insurance is found in the ancient code of hammurabi. simple insurance contracts were also commonplace in greek and roman civilizations for maritime trade. the insurance premium, a concept at the heart of the industry, was first observed in historical records in the 14th century in northern italy. the innovative spirit and ingenuity associated with insurance offers great promise for the industry to remain relevant, flourish and contribute to the development of the nation in the times to come. the late steve jobs once said that “ innovation distinguishes between a leader and a follower. ” as our economy continues to grow and transform, i would urge the industry to provide leadership in demonstrating responsible and inclusive innovation. 4 / 4 bis central bankers'speeches

it would be desirable if other countries in the region can also develop equivalent standards that could eventually be consolidated as shariah standards that are applicable to the whole region and to even serve as benchmarks to other muslim countries. conclusion the rapid transformation of the islamic financial sector will certainly affect the ascertainment of islamic law on contemporary issues. this change requires the readiness of shariah scholars to play a greater role and to interact with others from various disciplines to enrich and enhance ijtihad with new perspectives, against the backdrop of a contemporary bis central bankers ’ speeches landscape. this innovation will only be generated through the openness of minds and a paradigm shift, based on sound understanding of the shariah objectives. as the vanguard of islamic finance, it is the responsibility of shariah scholars to promote best practices in the shariah fraternity through an inclusive and contemporary ijtihad, in line with the rapidly evolving operating environment. finally, i pray that the discussions will run smoothly and will achieve the intended objectives. on this note, i end my speech with the words of imam ibn taymiyyah, : “ surely among the main thrusts in a religion is the union of hearts, the unison of views and easing of disputes conducted in a good way. ” wabillahi taufik wal hidayah. assalamu ’ alaikum warahmatullahi wabarakatuh. thank you. bis central bankers ’ speeches