Myanmar Opens Doors to Foreign Insurers
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In a significant move towards financial liberalization, the country issued its first-ever licenses to five foreign fully owned life insurers. It also awarded licenses to six joint ventures to operate in the country.
Myanmar’s Financial Regulatory Department has issued full licenses to Prudential, Dai-ichi Life, AIA, Chubb and Manulife to issue life insurance policies through fully-owned subsidiaries in the country, «The Myanmar Times» reported on Thursday.
The five firms were granted provisional licenses in April.
With a fast-growing middle class and an urbanized and tech-savvy population, the domestic insurance market is a lucrative one. The country currently has one of the lowest insurance rates globally with only 4 percent of the population having any cover, but could be worth some $2.66 billion in 10 years, the report said, citing data by local insurer IKBZ Insurance.
A total of six licenses were also awarded to joint ventures between foreign and local firms.
Licenses were granted to three life insurance JVs: Capital Life Insurance and Taiyo Life Insurance; Citizen Business Insurance and Thai Life Insurance; and Grand Guardian Life Insurance and Nippon Life Insurance.
Licenses were granted to three non-life insurance JVs: AYA Myanmar General Insurance and Sompo Japan Nipponkoa Insurance; Grand Guardian General Insurance and Tokio Marine & Nichido Fire Insurance; and IKBZ Insurance and Mitsui Sumitomo Insurance.
Questions & Answers
Q.Which foreign insurance companies have received licenses to operate fully-owned subsidiaries in Myanmar?
Which foreign insurance companies have received licenses to operate fully-owned subsidiaries in Myanmar?
Five companies received full licenses: Prudential, Dai-ichi Life, AIA, Chubb, and Manulife. They will issue life insurance policies through fully-owned subsidiaries in the country.
Q.How many joint venture licenses were awarded, and what types of insurance do they cover?
How many joint venture licenses were awarded, and what types of insurance do they cover?
Six joint venture licenses were awarded in total. Three are for life insurance operations and three are for non-life insurance operations.
Q.What is the current penetration rate of insurance in Myanmar and its potential future value?
What is the current penetration rate of insurance in Myanmar and its potential future value?
Only 4 percent of the population currently has any insurance cover, one of the lowest rates globally. The market could be worth around $2.66 billion in 10 years.
Q.When were the provisional licenses granted to the fully-owned foreign life insurers?
When were the provisional licenses granted to the fully-owned foreign life insurers?
The five firms that received full licenses for fully-owned operations were granted provisional licenses in April.
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