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Insurance Licenses Awarded to Foreign, Joint-venture Companies
Myo Sandar/Myanmar Business Today
The Ministry of Planning and Finance granted insurance licenses to five foreign-owned life insurers, three joint-venture life insurance companies and three joint-venture general insurance companies at a November 28 ceremony in Naypyidaw.
The decision to award a license to these companies was based on their completion of the prerequisite process for operating insurance businesses, according to the ministry.
Myanmar started opening up its insurance industry in 2013. In January, the government announced that it would allow foreign companies to enter the local insurance market. Foreign entities are allowed to own up to 35 percent of shares in insurance joint ventures.
Currently, 13 foreign insurance companies have opened representative offices in Myanmar. Most of them are from Japan and the rest are from China, Singapore and India. In addition to Myanma Insurance, there are 12 other local insurers.
Despite the country’s small insurance penetration rate, an IKBZ survey estimates that Myanmar’s insurance market will grow to K1.75 trillion by next year and K4 trillion over the next 10 years.
Health and life insurance are the most popular insurance types in Myanmar, where only two million people out of a 53 million population have insurance. Experts say that if insurance companies can strengthen the market, the local insurance industry will grow to its full potential.
Economic growth reports often indicate that allowing foreign insurance companies, banks and wholesale businesses into the domestic market will promote foreign investments in Myanmar.
The five foreign-owned companies awarded a life insurance license are AIA Myanmar Life Insurance, Chubb Life Insurance Myanmar, Dai-ichi Life Insurance Myanmar, Manulife Myanmar Life Insurance and Prudential Myanmar Life Insurance. The three joint-venture companies granted a life insurance license are CB Life Insurance, Capital Taiyo Life Insurance and Grand Guardian Nippon Life Insurance.
The three joint-venture companies awarded a general insurance license are AYA SOMPO Insurance, Grand Guardian Tokio Marine General Insurance and KBZ MS General Insurance.