August 18, 2016

Gov’t to open more insurance categories to private insurance firms

Yangon, 12 July— Myanma Insurance, the state-owned insurance company that is part of the Ministry of Finance, is considering opening up more insurance categories to private insurance companies, Dr Maung Maung Thein, deputy minister for finance and chairman of the Insurance Business Supervisory Board, said Saturday.
“As far as they gain more experience in the insurance business, we will grant more insurance products like mercantile marine insurance to them so that they can reach a position to keep abreast with international insurance firms within one or two years,” he said.
The Myanmar government allows different categories of insurance such as credit guarantees and health insurance, but limits life and general insurance.
Currently, Myanmar has 11 private insurance companies, and the premium income of the insurance sector reached more than K 72 billion in 2014.
Myanmar has insurance penetration of 0.1 percent of GDP, an increase of about 4.5 times compared to a decade ago, the deputy minister said. However, total premium income is small relative to the country’s economy.
Life insurance is expected to take off in Myanmar when the Yangon Stock Exchange comes into operation in late November or early December, Dr Maung Maung Thein said.
The government as yet has no plans to give insurance licenses to more private firms, according to IBSB.
The government has already allowed three foreign insurance firms to operate in the country’s special economic zones.— GNLM


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