Myanmar has finally opened its insurance sector for private underwriters to set up their insurance operations in Myanmar, which was officially closed for them since 1963, after nationalization of 78 foreign insurance companies previously operating in Myanmar.
Insurance Business Supervisory Board of Myanmar has invited private insurance firms to submit the prescribed application, which will be issued from 2 May 2012, and the last date of submitting the application is 29 June.
Under the new guidelines, the government has opened six types of insurance including life insurance, car insurance, cash safety insurance and fire insurance among others.
The government said that by opening the insurance for private players, it aims to develop national economy as well as competition in Myanmar.
Further, they will provide coverage to the private as well as state owned properties from damage and loss due to unexpected various natural calamity.
The government has made it mandatory for the private underwriters to own at least BDT46bn ($57m) capital to float up of an insurance firm, out of the 40% of the paid-up capital has to remain in the bank account.
Interested parties will have to obtain approval from Myanmar Insurance and after receiving approval, will have to register the company with the word "Insurance" in the company name, said the board.
