Financial Crime World

Financial Regulatory Bodies in Myanmar Make Significant Progress

In recent years, financial regulatory bodies in Myanmar have made notable strides, creating new opportunities for citizen investment and insurance sector growth.

Background

Until 2013, only State-Owned Myanma Insurance was allowed to operate in Myanmar’s insurance market. This changed with the relaxation of regulations, which granted permission to 11 Citizen-Owned companies to operate insurance business in May 2013.

Liberalization Plan and Roadmap

To accelerate the process of allowing private sector access to the insurance market and attract more foreign investment, the Insurance Sector Liberalization Plan and Roadmap were drawn up. The plan aimed to introduce significant changes to the insurance industry in Myanmar.

Current State

As a result of these efforts:

  • 100% subsidiary foreign life insurers, JV life insurers, and JV non-life insurers are allowed to operate insurance business since November 2019.
  • One life insurer and one non-life insurer were granted permission to operate insurance business in January 2023.
  • Today, there are 27 insurance companies, including Myanma Insurance, operating in the Myanmar insurance market.

Promoting Capacity Development

Regulatory bodies have taken steps to promote a balanced development of the insurance sector. In cooperation with the Myanmar insurance association:

  • Activities have been carried out to promote the capacity of insurance agents.
  • The Financial Regulatory Department has granted licenses to 8,834 insurance agents and allowed 32 corporate agents, 22 insurance agents training centers, and one insurance agents examination center to operate.

International Cooperation

To further develop the insurance business in Myanmar:

  • A Memorandum of Understanding (MoU) between Insurance Institute of India (III) and the Financial Regulatory Department was signed in October 2016.
  • An MoU between the Office of Insurance Commission of Thailand (OIC) and the Financial Regulatory Department was also signed in January 2018 to provide technical assistance, sharing, and exchange of information.

Hosting International Events

Myanmar has hosted several international events:

  • The OECD Insurance Roundtable discussion from March 4-5, 2019, aimed to regulate the Myanmar insurance market according to international standards.
  • The 22nd ASEAN Insurance Regulators’ Meeting and the 45th ASEAN Insurance Council Meeting from November 25-29, 2019, strengthened ties between ASEAN membership countries to promote a stronger insurance market.

Conclusion

These efforts have paved the way for more private sector participation in the insurance market, attracting more foreign investment and promoting a balanced development of the insurance sector in Myanmar.