Myanmar is one of the last frontiers in Asia that has a great potential insurance market, 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 USD 0.99537 and penetration at 0.07%. With a population of 53.6 million as of FY 2018/19, the sector presents significant potential for expansion.
For the first time, foreigners are allowed access to one of the largest untapped insurance market in the world. It was only last year that the government gave the liberalisation regulations the go-ahead and allowed a number of foreign insurance companies to enter the largely untapped market. The Ministry of Planning, Finance, and Industry granted permission to five wholly-foreign life insurance companies and six joint venture life insurance and non-life insurance companies to operate in the domestic insurance market. Since then, the sector has received investments of around USD 120 million and MMK 60 billion (USD 43 million), according to the Myanmar Investment Commission (MIC).
Some 14 foreign insurers will enter Myanmar’s insurance market by the end of this year through either wholly-owned subsidiaries or joint venture companies with local peers. The entry of multinational insurers with well-established operations will bring a jolt of competition to a market consisting mainly of smaller local players. The market potential for both foreign and local insurers looks very promising. According to the report, the industry has the potential to grow into a MMK 4 trillion market in 10 years.
Correspondingly, the country’s financial sector governance has been strengthened and the economy has continued to grow. The rising per-capita incomes are expected to lift premium volumes and improved regulations are set to stimulate investment. The adoption of international best practices is expected to support increased activity and competition.
Click on the video below to watch MITV coverage (in English) of the 2019 Edition on Myanmar National TV 8pm News…
Click on the video below to watch Channel K coverage (in Burmese) of the 2019 Edition on Facebook…
The COVID-19 pandemic has put a spotlight on the influx of consumer demand for life insurance. Consumers want to get their finances in place and the need to do it as fast as possible, without leaving their homes. This is shining a bright light on insurtech firms that are well-equipped to handle speedy underwriting.
The 2nd INTO MYANMAR Insurance Summit 2020 picks up from the success of last year’s event and will dive into the changes that are expected on the Myanmar insurance landscape. How should you position your organisation to leverage on the opportunities presented? How are insurtech solutions proving viable? How is the insurance industry working with governments’ emergency responses? A business-as-usual attitude will not help you. Seize your first mover advantage now.
The Biggest Names in the International and Local Insurance World will Come Together to Build Fruitful Partnerships, Probe New Ideas and Learn from Their Industry Peers!