Myanmar opens up for foreign insurance companies

Reading Time: 2 minutes
Myanmar Opens Up For Foreign Insurance Compnaies
Maha Bandula Park in downtown Yangon © Arno Maierbrugger

Myanmar’s financial regulator will begin granting licenses to foreign-owned insurance companies, allowing them to operate in the market by April this year.

“We will soon invite expressions of interest so that foreign insurers can start operations in April or no later than May,” U Thant Sin, director of the Financial Regulatory Department under the Ministry of Planning and Finance, was quoted as saying by the Myanmar Times.

There are currently 31 representative offices of insurers from 14 countries in Myanmar. These firms are anticipating the government’s go-signal allowing full foreign investments in life insurance and joint ventures in general insurance.

According to an industry leader, foreign competition is important in order to develop Myanmar’s insurance industry.

“We need more competition to be able to provide better services,” said U Myo Min Thu, managing director of AYA Myanmar Insurance.

“Because we lack human resources and skills, foreign insurance providers can help to fill this gap with technical know-how. This will help us produce better quality products and distribution channels,” he added.

Meanwhile, U Thant Sin added that the opening up of the insurance sector to foreign investment will also deepen the bond market and provide additional fund sources for the government.

“If we allow foreign players in the market, we will be able to get the funds we need to develop the government bond market,” he said, adding that “we will be asking for a large amount of capital from insurance companies to buy government bonds.

“Foreign insurers will need to fork out $14 million for a license to provide general insurance. Once the insurance company is given the license, 30 per cent of their required capital should be for buying government bonds,” he noted.

Meanwhile, the Myanmar Investment Promotion Plan was introduced by the Myanmar Investment Commission to promote investments for better development in economy, institutions, infrastructure, industries and human resources in the country.

Under the plan, Myanmar targets to attract more than $200 billion in the next 20 years from the fiscal year 2016-2017 to 2035-2036.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 2 minutes

Maha Bandula Park in downtown Yangon © Arno Maierbrugger

Myanmar’s financial regulator will begin granting licenses to foreign-owned insurance companies, allowing them to operate in the market by April this year.

Reading Time: 2 minutes

Myanmar Opens Up For Foreign Insurance Compnaies
Maha Bandula Park in downtown Yangon © Arno Maierbrugger

Myanmar’s financial regulator will begin granting licenses to foreign-owned insurance companies, allowing them to operate in the market by April this year.

“We will soon invite expressions of interest so that foreign insurers can start operations in April or no later than May,” U Thant Sin, director of the Financial Regulatory Department under the Ministry of Planning and Finance, was quoted as saying by the Myanmar Times.

There are currently 31 representative offices of insurers from 14 countries in Myanmar. These firms are anticipating the government’s go-signal allowing full foreign investments in life insurance and joint ventures in general insurance.

According to an industry leader, foreign competition is important in order to develop Myanmar’s insurance industry.

“We need more competition to be able to provide better services,” said U Myo Min Thu, managing director of AYA Myanmar Insurance.

“Because we lack human resources and skills, foreign insurance providers can help to fill this gap with technical know-how. This will help us produce better quality products and distribution channels,” he added.

Meanwhile, U Thant Sin added that the opening up of the insurance sector to foreign investment will also deepen the bond market and provide additional fund sources for the government.

“If we allow foreign players in the market, we will be able to get the funds we need to develop the government bond market,” he said, adding that “we will be asking for a large amount of capital from insurance companies to buy government bonds.

“Foreign insurers will need to fork out $14 million for a license to provide general insurance. Once the insurance company is given the license, 30 per cent of their required capital should be for buying government bonds,” he noted.

Meanwhile, the Myanmar Investment Promotion Plan was introduced by the Myanmar Investment Commission to promote investments for better development in economy, institutions, infrastructure, industries and human resources in the country.

Under the plan, Myanmar targets to attract more than $200 billion in the next 20 years from the fiscal year 2016-2017 to 2035-2036.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid