Insurance firms told to brace for foreign competition

The government has allowed 15 foreign insurance companies, including firms from Japan, the US and Europe, to open branch offices.

Simeon Preston from AIA Insurance said: "We expect to offer long-term life and health insurance services. Life insurance will be a big market when international insurance companies enter the country. We are ready to share our technology, courses, experience, management and information."

The supervisory board is planning to grant permits for foreign insurance companies to insure the special economic zones. The board has yet to release the names of the permit winners. The licence fee for foreign insurance companies is US$30,000.

Dr Maung Maung Thein, deputy finance minister, said: "Private insurance companies have no sound foundation as their emergence happened recently. We have yet to grant permits to foreign insurance companies for fear that Myanmar companies cannot compete with them. Those foreign companies will move in alongside a massive influx of foreign investment."

Myanmar's untapped insurance market is enormous with international companies claiming they can offer great benefits.

Established in 1952, Myanmar Insurance has granted permits to 12 Myanmar insurance companies since May 2013.

http://www.information.myanmaronlinecentre.com/insurance-firms-told-to-brace-for-foreign-competition/