GGI Insurance launched a short term endowment life insurance, the first of its kind in Myanmar, at Pan Pacific Hotel in Yangon on August 3.
These aged between 10 and 60 may have such a kind of insurance with an amount of K1 million to K50 million. The period of insurance can be five, seven or ten years, and a premium can be paid ever month, every three months, every six months or every year.
"For the premium, we include interest rate. But it is unlike banks. Banks pay interest depending on savings. In insurance, the interest rate will be 6 percent depending on birth and death rates. It also depends on age group. Younger people can receive larger interest rate. But, 6 percent is about average," said U Kyaw Lin Tun, the Life Insurance Department in charge of GGI Insurance.
Vice president of GGI Insurance Htay Paing said in Myanmar very few people took interest in life insurance, adding that insurance service had not changed significantly for over 50 years.
"We haven't seen any significant change in Myanmar's insurance service for over 50 years. Out of the population of over 50 million, the number of those who have insurance is not 300,000 yet. One in 100 people does not have insurance. The government allowed private insurance services in 2013. When 12 private insurance companies competed with each for five years, there was little progress. People have forgotten life insurance. Now we can say that we will try to wake the people up to develop Myanmar's insurance service," said Htay Paing.
GGI Insurance provides 17 kinds of insurance. Most have car insurance while fewest people have life insurance.