The transition taking place is in tandem with emerging trends taking place at the international front, as well as the core supervisory principles of the International Association of Insurance Supervisors (IAIS), which collectively, provide a road map on the future direction of insurance regulation. Notwithstanding the move to a more principle-based regime, it is important that there remains a sufficient degree of regulatory oversight to maintain financial stability and public confidence. It is equally important for the regulations to focus on facilitating market-led adjustments that will allow the industry to evolve in response to market developments. This includes putting in place mechanisms that harness market forces and discipline, to reinforce prudential regulation whilst also promoting a more efficient and responsive financial system. As we prepare ourselves for the challenges arising from greater integration and increased competition, there will be regular review and re-assessment of the regulatory framework as we benchmark our regulations against leading business practices and international standards set by recognized bodies such as the IAIS and the International Accounting Standards Board. Rapid developments in technology and information systems coupled with the forces of globalization have made the world increasingly borderless. While such developments are welcome as they provide a platform to hasten the pace and manner through which businesses and financial transactions can be efficiently concluded, they can also facilitate money launderers and terrorist financiers to conduct a range of illegal activities, thus destabilizing a country's financial system and damaging its image and reputation.
Zamani Abdul Ghani: Changes and challenges concerning the insurance industry in Malaysia Keynote address by Mr Zamani Abdul Ghani, Deputy Governor of the Central Bank of Malaysia, at the 23rd Pacific Insurance Conference, Kuala Lumpur, 29 October 2007. *  *  *  Let me start by joining my colleagues from the Malaysian insurance industry in extending a very warm "Selamat Datang ke Malaysia" to all the guest speakers and conference delegates from abroad. It is my earnest hope that you will not only benefit from the deliberations during the conference, but also find time in between your short stay here to discover Malaysia and experience our rich diversity in colours and culture. I am indeed honoured to be with you this morning to officiate the opening ceremony of the 23rd Pacific Insurance Conference – the first to be held in Kuala Lumpur in the conference's 44-year history. I must congratulate LIAM for its efforts in organizing this prestigious conference involving insurance leaders from the Asia Pacific Region. The conference theme "New Solutions for Traditional Challenges: Winning Ideas from Industry Leaders" is most appropriate as the changing financial landscape poses significant challenges to the insurance industry in the Asia Pacific Region. It is indeed timely therefore that the life insurance fraternity has come together to share critical insights and perspectives of key challenges ahead and map out new strategies to capitalize on the opportunities while avoiding the pitfalls.