. for example, the supply of niche insurance products may reduce or end altogether, given the increased costs and frictions of serving eu customers from the uk. finally, brexit is not the only uncertainty that we face. to touch on three others : 1. firstly, the effects of climate change, in the form of more frequent and severe storms, floods and droughts, have already affected insurers. further increases in the number and severity of disruptive climatic events look certain. furthermore, as the governor of the central bank recently remarked10, the financial system ( including the insurance industry ) has a crucial role to play in the transition to a lower carbon economy. 2. secondly, insurance is also at the forefront of the opportunities and challenges that arise from disruptive technology change both in how services are provided and the services that are needed. 3. and thirdly, demographic changes across europe are profound, with an increasingly aged population needing to be served for a longer period of time. to conclude on resilience, as risks evolve, so should the insurance industry. i expect insurance firms to be anticipating future significant risks and opportunities to ensure that they remain resilient over the long term. through this, i expect that you will not only be rising to the challenges that are in front of us today, but are also resilient enough and sufficiently future - focused to successfully support the needs of the economy and your customers long into the future. regulatory regime i have touched on our work and expectations on the necessary enhancements to recovery and resolution planning for insurance firms. i would also note that we are undertaking work in 2019 on prism, to ensure that it continues to evolve and remains fit for purpose as our approach and the risks in the financial system change. it is over three years now since solvency ii came into effect. i am very pleased to welcome karel van hulle here today who was instrumental in the introduction of the solvency ii regime. the introduction of solvency ii represented a significant milestone for the insurance industry. we can, and must continue to develop the solvency ii regime, to ensure it remains relevant and appropriately protects policyholders and beneficiaries. solvency ii will be reviewed in 2020. this review will provide the opportunity to examine the practical implementation of solvency ii, ensure it remains fit for purpose, adapts to changes in market conditions and evolving business models, while continuing to meet its fundamental objectives. input to the 2020 review of solvency ii will

to a potentially disastrous chain reaction of failures. minimizing systemic risk in payment and settlement systems is not only an objective in itself. it is also a precondition for achieving financial stability and for the efficient conduct of monetary policy. these, in turn, are necessary for the integrity of the euro as a major global currency. our oversight role is enshrined in both domestic and european legislation. domestically the legal basis is the central bank act of 1997. in the broader european context, one of the basic tasks of the european system of central banks ( of which the bank is a member ) is " to promote the smooth operation of payment systems ". the eurosystem is further empowered " to ensure efficient and sound clearing and payment systems within the community and with other countries ". back in the early 1990s, central banks focussed on large - value netting systems where the safety concerns were more evident. gradually, however, the focus of oversight has been extended, to varying degrees in different countries, to : • real - time gross settlement systems, • retail payment systems, • payment instruments such as payment cards, direct debits and credit transfers, • third - party service providers, • central counterparties, and • securities clearing and settlement systems. the extensive range of activities now subject to oversight reflects their potential impact on financial stability and their links to the smooth conduct of monetary policy. central banks are organised so that their operational role in payment systems does not conflict with their oversight role. the bank currently directly oversees the irish real - time gross settlement system, iris, and the two retail payment systems concerned with paper and electronic clearing. in doing so, it applies the provisions of the central bank act, 1997 that require all payment systems operating in the state to be approved, and have their rules vetted, by the central bank. in approving any payment system's rules, we must have regard to the "... proper and orderly regulation of the payment system concerned and of competition between payment systems... ". in assessing the soundness of these domestic payment systems, we use as reference the internationally recognised principles developed by the committee on payment and settlement systems of the central banks of the g10 countries. in addition to these direct arrangements, the central bank is involved in a number of co - operative oversight roles. thus, in relation to the target system, which interlinks all eu euro - denominated real time gross settlement systems, we participate in the eurosyst