And if this were nevertheless to happen, the consequences would probably only be a gradual strengthening of the problems I already see with the current low inflation. The risk that we would face a prolonged period of deflation is partly linked to the view of what monetary policy can achieve. I sometimes see an overly pessimistic attitude to the Riksbank’s ability to influence Swedish inflation rate. Let me discuss this question in conclusion. Monetary policy determines the inflation rate Central banks often talk about the so-called transmission mechanism, that is, how a change in the policy rate affects different aspects of the economy and ultimately the rate of inflation. But how well does this transmission actually work? Does a small open economy like Sweden need to adapt to monetary policy and price trends abroad? Has the transmission mechanism been damaged or weakened by the financial crisis? BIS central bankers’ speeches  9  My perspective on these questions is perhaps rather split. It is clear – and has been so for a long time – that we do not completely understand how the transmission mechanism works. The description we give is simplified and partly based on theories and hypotheses that have not been completely verified by data. But at the same time, empirical studies and practical experience show that the policy rate is a useful tool for influencing economic activity and the inflation rate. It is of course true that a small open economy like Sweden is dependent on developments abroad.
In France, the ACPR is mobilised to support innovation, as demonstrated by the creation of the Fintech Innovation Unit and the Fintech Forum with the French financial markets authority. Within this Fintech Forum, we work closely with other public authorities to promote the development of Fintechs and Insurtechs in France. A year ago, the ACPR authorised the first fully digital insurance company in the health sector, the Insurtech “Alan”. In the case of insurers, the digital revolution starts with a complete overhaul of customer relationships and user habits. But it goes further than that. In the digital revolution, the insurance sector can bring stability and protection – it is this that has always been the raison d’être of insurance. I’d like to underline two topics that I think are essential: cyber-insurance and big data. Coverage against cyber-risk, first, is a very real concern that affects all companies – both small and large – as cyber-attacks are becoming increasingly frequent and costly: in 2016, cyber-attacks were estimated to cost businesses about USD 450 billion a year at the global level, 3/4  BIS central bankers' speeches  according to a report by Lloyd’s and Cyence. Despite these threats, the cyber-insurance market is still underdeveloped. Insurers can and should take inspiration from their own experiences in tackling cyber-risk, and use it to develop a more mature European cyber-insurance offering. The second subject I’d like to focus on is personal data and big data.