It is worth remembering, in this  BIS Review 23/2002  3  context, that there is no reason why a cash changeover should have to be made at the start of a year, for practical reasons it would be better implemented in March or October. Another alternative described in the report is known as "Big Bang", i.e. to begin a cash changeover at the same time as the krona exchange rate is fixed and full membership of the monetary union occurs. This scenario requires a preparation period of 2-2.5 years. This makes the demand that the euro can be handled in all transactions in Sweden, both physical and electronic, and by everyone in Sweden, from the corner tobacconist to the National Swedish Social Insurance Board and the major banks from the first day of membership. As this alternative involves a simultaneous changeover in IT systems, other practicalities such as accounting and payment of taxes, as well as a physical cash changeover, it makes high demands on co-ordination and information. Taking into account the longer preparation period prior to the actual EMU membership required in this alternative, it would take longer until Sweden could fully participate in all forums for co-operation and decision-making within the monetary union than would be the case with a gradual transition process. The advantage of this scenario is that it would avoid uncertainty arising among the general public over the position of the euro during the transition period in that the euro could be used everywhere immediately.
But realising this potential would require an inspired leadership by the industry, to rise to challenge the status quo and raise the game in delivering value to stakeholders. After 40 years, I believe the industry is at another crossroad. A new and exciting wave of growth and development for the industries lies ahead of us, but it can only happens if we are prepared once again to embrace the change as we did before, and collectively rise to overcome the barriers that threaten to hold the industry back from achieving its full potential. Reform via introduction of LIFE Framework The next phase of transformation is at our doorstep. As you are well aware, the blueprint for the next phase of change is encapsulated in the proposed LIFE Framework. The Framework lays the ground for greater operational flexibility, competition and diversity in the life insurance industry. More importantly, it will encourage innovation including expanding new delivery channels to reach new target groups, provide the right incentives to raise the professional standards of insurance intermediaries and deliver better value to policyholders. The reforms envisaged also seek to leverage on the digital age which presents immense opportunities to revolutionize the delivery of insurance products in a more effective and cost efficient ways that benefit consumers at large. With Malaysia’s household internet penetration rate of 67.3% and more than 43 million cellular phone subscribers in Malaysia, this mode of delivery certainly demands serious consideration. Let us tap this opportunity in delivering new insurance products and services.