An Accenture survey revealed that aggregators account for 70% of new business premiums in the UK private automobile insurance market. Indeed, two product aggregators platforms are already operating within Bank Negara Malaysia’s Regulatory Sandbox. The Bank is reviewing the regulatory framework to enable the aggregators to operate by the end of this year. 1/5  BIS central bankers' speeches  These are headwinds that the industry has to tackle head-on, and like it or not, they will further intensify. While we cannot stop these changes, we can certainly choose how we respond to it. With challenges are opportunities. These can only be reaped through a combination of traits – greater proactiveness, a willingness to adapt and clear strategic thinking. I do not doubt that this is much harder than it sounds, but I believe a good place to start would be focusing on three priorities. Allow me to elaborate on each in turn. Technology that matters The vision for the life insurance and family takaful industry is to achieve a penetration rate of 75% of the Malaysian population. Within this, the takaful industry has set a 25% target to be achieved by 2020. For this to happen, it is crucial that the industry gets to grips with the shift in market demographics, especially where interactions with technological platforms are concerned. It is imperative that agents embrace technology. A 2017 study 1 by Bain & Company indicates that nearly 60% of insurance customers in Malaysia are digitally active.
This is done mostly in collaboration with other financial centres and overseas authorities, including the Banque de France. Back in 2014, the HKMA and Banque de France signed a memorandum of understanding to strengthen cooperation between the two financial centres. To me, this collaboration can go beyond China opportunities to cover other new market developments, including Fintech and green finance. 7. Let me start with the opportunities in Mainland China. As you are aware, last year marked the 40th anniversary of the reform and opening-up of Mainland China. Throughout these years, Hong Kong remains as the gateway to Mainland China. Today, as Mainland China continues to open up its capital markets, we serve as a major platform for international investors to access the world’s second largest stock market and third largest bond market. Take Bond Connect as an example. It provides a convenient channel for international investors to access the Mainland’s bond market using international market practices such 1/2  BIS central bankers' speeches  as the nominee holding structure. Similarly, Stock Connect provides access channel for international investors to invest in the Mainland’s stock markets by engaging brokers and custodians in Hong Kong through existing structure. 8. With the smooth inclusion of A-shares into MSCI Emerging Markets Index last year, more global indices are planning to add RMB products into their constituent assets. For example, RMB bonds will be included in the Bloomberg-Barclays Global Aggregate Index starting this April and FTSE’s Global Equity Index Series will also include A-shares from this June.