China and India's emergence as economic powerhouses have driven cross-border trade and fuelled economic growth in Asia. Japan has rediscovered its vigour. Many Southeast Asian economies are enjoying vibrant economic growth. The resultant wealth creation will increase demand for insurance. To increase our competitiveness as a regional insurance and reinsurance centre, and retain a greater share of the Asian business that traditionally flows outside Asia, it is important for Singapore to deepen its pool of underwriting and broking expertise, especially in the more specialised risks, and to increase the capacity to underwrite such niche risks. We also want to encourage greater specialisation and new techniques in the industry, for example by having specialised service providers to support the industry, and by facilitating access to a wider variety of risk and capital management tools for insurers. Let me share with you some ideas and initiatives we have to help catalyse such developments. Insurance expertise and capacity Firstly, regarding insurance expertise. The industry needs to accelerate its efforts to provide more regional and international exposure, and advance training across a broad range of business lines, to raise the level of technical competency and experience of its staff. The industry should take advantage of MAS' Financial Training Scheme (FTS) which provides co-funding for training. Such efforts should not be focused only on developing the existing talent stock, but also cultivating the talent pipeline. The insurance industry faces strong competition for intellectual capital from other economic sectors.
BIS Review 103/2006  3