That is certainly true in the sense that we are able to raise the interest rate and ensure that inflation comes into line with our target. But the picture as presented is too rosy. If wage formation were to fail or budget policy became excessively expansionary, the restoration of a balanced economy would be costly: growth would be depressed and employment would presumably fall when interest rates are raised, accompanied perhaps by an appreciation of the krona. In this sense, access to a national monetary policy is not a patent remedy. At the same time, it is clear that we – as a member of the monetary union – would lose the option of guaranteeing low inflation even by having recourse to this costly cure. For example, if the labour market organisations were to make unduly high wage settlements or if fiscal policy were to get out of hand, the Riksbank would no longer be in a position to secure low inflation. To me, however, it is by no means clear that the natural conclusion today is to begin arguing that Sweden ought not to aim for euro area participation as soon as there is political support. Compared with a couple of years ago, the economic situation is now more stable in almost every respect. It is not only that the economy has adjusted in various ways to lower inflation; government finances have also improved and during the past year employment has risen rapidly.
While the financial aspects are important, we should inspire our young recruits on the underlying values of the industry and capitalise on the noble objective of providing protection and managing risk for our people. Takaful for example, is built upon the spirit of brotherhood, solidarity and mutual assistance which provides for mutual financial aid and assistance to the participants. Drawing talent that shares the same values will ensure commitment and support talent retention in the industry. When the general public interact with the industry, with highly motivated staff, it will sow confidence and consequently trust. Refrain from making false promises, make clear the terms and conditions up front In building trust, a huge responsibility lies now on intermediaries playing their role, as intermediaries’ behaviour mirrors the image of the insurance and takaful industry. Many consumers are not well versed with insurance and takaful terminology and will rely on the advice rendered and the full disclosure of the policy terms and conditions. This low degree of familiarity with insurance and takaful terms makes it even more crucial for the full disclosure of the terms and conditions governing a policy. An important consideration is the role of intermediaries being the ‘first point of contact’ with the public. Intermediaries create an impression, powerful enough to influence a customer’s decision whether or not to engage in an insurance contract.