Myanma Insurance and India’s state-run General Insurance Corp (GIC Re) signed an MoU in Yangon yesterday on amending laws related to insurance and reinsurance in Myanmar.
Reinsurance is insurance that is purchased by an insurance company to protect it from insolvency after major claims events, such as major disasters such as hurricanes and wildfires.
The MoU was signed by Dr. Sandar Oo, Managing Director of Myanma Insurance, and Ms. Alice Vaidyan, Managing Director of GIC Re, at the head office of Myanma Insurance in Yangon.
The MoU represents the cooperation between the two state-owned institutions in sharing the experiences of GIC Re to promote the capacity of the staff of Myanmar and the legislative sector.
“It is a huge burden for Myanma Insurance to pay a large obligation resulting from an insurance claim for businesses with huge investments, for example planes, ships, gas fields etc. So, we transfer portions of risk portfolios to other parties likes India’s GIC Re,” said Daw Sandar Oo.
Myanma Insurance is planning to expand its insurance services, making the use of experiences from the GIC Re under the MoU.
On its way to establishing reinsurance, Myanmar Insurance will work together with local private insurances.
Myanma Insurance offers 29 types of insurance, including the five major insurance policies — health, car, homeowners, life and disability.
By Nyein Nyein Ei