These projects relate to building the capacity and enhancing the efficiency of financial institutions as well as the development of consumer education and protection. Policy measures for the insurance industry in 2002 will continue to focus on promoting incentives for improved performance, encouraging the adoption of best practices and strengthening consumer protection. Towards this end, 10 recommendations under the FSMP involving 13 projects are targeted to be fully implemented in 2002. The recommendations include the introduction of independent financial advisers (IFAs) and the adoption of 'best advice' practices in the sale of life insurance products that will enable Malaysian consumers to obtain professional independent advice on their financial options. Given the right strategic focus, there is tremendous potential for future growth in the life insurance sector, particularly in products and services that provide for retirement needs, capital accumulation and long-term care. Given the right strategic focus, there is tremendous potential for future growth in the life insurance sector, particularly in products and services that provide for retirement needs, capital accumulation and long-term care. To achieve sustainable growth, there is a need for insurers to intensify research and development efforts to provide consumers with a broader range of innovative and competitively-priced products. Furthermore, there is a need to establish and continuously strengthen minimum underwriting standards and controls, particularly in new lines of business. This is to ensure that business is underwritten on sound and prudent insurance principles.
And I want to greet Sebastián Claro, the new Board member of the Bank, who I am sure will quickly be immersed in the spirit prevailing in this institution. I believe that everyone here today share a legitimate pride because of the place this Bank has achieved both in the Chilean society and at the world level. Let me tell you what happened to me four years and seven months ago, when President Lagos asked me if it would be a problem to me to be appointed Board member and Governor of the Central Bank for such limited period, which was the remaining of the term of my predecessor, Mr. Carlos Massad. I replied that it was not a problem, because it gave me time enough to propose and develop an agenda. It is no secret that I came to an institution that was living a crisis. My predecessor, in an act of great integrity, had chosen to resign in order to avoid the criticism that was building up against the Bank from affecting its institutional capital irreparably. I was aware then that, by accepting the post, I was assuming an enormous responsibility, which consisted essentially in protecting and strengthening its institutional capital. It was, therefore, a major task, that started precisely by introducing policies of riskmanagement, transparency and efficiency that would protect the Bank’s institutionality and autonomy. In global terms, it was tantamount to placing the Central Bank at the same level in management as it was in monetary and financial policy matters.