The Ministry of Planning and Financed issued an announcement yesterday to invite Expressions of Interest (EoIs) and Request for Proposal (RfPs) from local and foreign insurers to conduct business in Myanmar.
According to the ministry’s announcement No. 1/209, the Financial Regulatory Department will help with clarifications and discussions on the EoIs and RfPs.
Under the Insurance Business Law, Section 29, the Ministry of Planning and Finance, with the approval of the Government, may grant permission to a company which wishes to operate the business of insurance underwriting or insurance broking with foreign investment”.
To develop the Myanmar insurance sector, the MoPF had, with the approval of the government, granted 11 insurance licenses to local companies in 2013.
The Myanmar Insurance Sector Liberalization Roadmap was approved by the Union Government to accumulate the investment needed for the country’s economic development, and to develop the non-banking financial sector.
The local composite insurers have been mandated by the MoPF to operate as separate life insurance and non-life insurance entities paving a way for foreign entities to associate or partner with the local insurers, as applicable.
The announcement stated that the following methods of licensing shall be implemented in accord with the Myanmar Insurance Sector Liberalization Roadmap:
(a) Life Insurance Companies
– Option 1: Allowing not more than 3 licenses for foreign life insurers as 100% wholly owned subsidiaries;
– Option 2: Allowing foreign life insurers with a life/composite representative office in Myanmar to form joint venture with local life insurers.
(b) Non-life Insurance Companies
Allowing foreign non-life insurers with a non-life/composite representative office in Myanmar to form joint venture with local non-life insurers.
For more details, please visit www.frd.gov.mm.
(Translated by AMS)