Myanmar will allow foreign insurance companies to offer insurance services as of the upcoming fiscal year, said Zaw Naing, Secretary of Insurance Businesses Supervisory Board.
“This is a roadmap for the development of local insurance sector. The Union government has already given the nod for it. We will allow foreign insurance companies to sell life insurance and miscellaneous insurance services in the country. It will start in 2018-2019 FY,” he added.
Currently, the Insurance Businesses Supervisory Board is carrying out step-by-step scrutiny of foreign insurance companies.
Dr Sandar Oo, Managing Director of Myanmar Insurance said: “Buying insurance services in local insurance companies are relatively low. People will have more choices when foreign insurance companies enter the local insurance market.”
“We welcome foreign insurance companies. We need their technology and capital. We are ready to cooperate with them. Now the amount of insurance services are very low. The contribution of insurance to the GDP is 0.07 per cent only. The life insurance accounts for 0.02 per cent of the total population. Life insurance is also relatively low. Thanks to technologies of foreign insurance companies, insurance services will spread to the whole country quickly. People will have more choices. Prices will decline when there are many competitors. People can choose high-quality products,” Dr Sandar Oo added.