Myanmar allows entry of six foreign insurers via joint ventures.
- September 2019
Myanmar has released the list of six foreign applicants allowed to form joint ventures with local players.
The Ministry of Planning and Finance said it is granting provisional licenses to three foreign insurers to establish nonlife insurance joint ventures—Sompo Japan Nipponkoa Insurance and AYA Myanmar General Insurance; Tokio Marine &Nichido Fire Insurance and Grand Guardian General Insurance; and Mitsui Sumitomo Insurance and IKBZ Insurance Co.
For life insurance, joint ventures have been allowed between Taiyo Life Insurance and Capital Life Insurance; Thai Life Insurance and Citizen Business Insurance; and Nippon Life Insurance and Grand Guardian Life Insurance. Sompo Japan Nipponkoa in a separate statement said it will initially subscribe to 15% of shares in its joint venture with AYA Myanmar General Insurance, with plans to increase shareholding to 35% within the first two years. The deal also includes a bancassurance arrangement with AYA Bank, the second-largest commercial bank in the country.
The companies will have to comply with all its conditions and take all necessary measures to ensure functional operations of their joint venture companies. “Upon fulfillment of the stipulated conditions, the MOPF will grant the successful applicants final approval for the joint venture,” MOPF said. Mitsui Sumitomo Insurance Co. Ltd.'s holding company, MS&AD Insurance Group Holdings Inc., said Mitsui Sumitomo will make a 10% investment in IKBZ Insurance subject to final approval of local authorities. Mitsui Sumitomo “will carry out necessary procedures based on instructions from local authorities and obtain the final approval by the end of October.”