A model or rule based framework may, therefore, be inadequate at present to guide the SBP in meeting unanticipated exogenous shocks and managing unforeseen crisis or crisis like situations as our understanding of the empirical links between instruments and targets of monetary policy is incomplete and rudimentary.
Turning to IT resilience, the dependence on technology in insurance services continues to increase. Too many firms are still not getting the fundamentals right, including regarding IT security and continuity of services. This is not a solid foundation for the building of digital-based strategies and greater investment in technology, processes and people is required.