On 2 January 2019, the Myanmar Ministry of Planning and Finance (MoPF) issued an Announcement (Announcement No. 1/2019) paving the way for foreign insurers to enter into the country’s largely untapped insurance market as part of an ongoing process to liberalise the sector. On 5th April, Myanmar’s government provisionally authorized five multinational insurance companies to establish wholly owned subsidiaries. By May, the government will choose other foreign insurers allowed to form joint ventures with local providers under a 35% ownership cap.
It marks the first time that the heavily-state-controlled economy has allowed foreign ownership in its fledgling insurance market, which was estimated to be worth only $13 million in life insurance premium revenue as of 2017.
Myanmar is one of the last frontiers in Asia that offers tremendous potential, with general insurance growing at 16.1% a year and life insurance at 25.3% a year, and with insurance density only estimated to be US$0.99537 and penetration at 0.07%. These recent developments present exciting market potential for both foreign and local insurers.
What changes are expected on the Myanmar insurance landscape? How should you position your organisation to leverage on the opportunities presented? A business-as-usual attitude will not help you. Seize the first mover advantage now!
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