Myanmar: Insurance demand to increase with growing banking network
Source: Asia Insurance Review | Jun 2018
The insurance sector is looking forward to more business as banks are opening more branches in new areas in Myanmar to chase market share.
“There will be more bank branches opening, including at the border towns and given the current state of the country, there will always be risks,” Co-operative Bank advisor U Pe Myint said to The Myanmar Times.
New development areas where banking needs will have to be met include the economic zone at the China-Myanmar border, markets to be set up at the Indian-Myanmar border and construction of a trading zone at the Myanmar-Bangladesh border.
In addition, there are risks involved in expanding to restive states like Shan and Kachin. In January, more than MMK90m ($67,000) was stolen when KBZ Bank in Myitkyina in Kachin State was robbed. In March, two Yoma Bank employees were killed and 22 injured in a bomb blast in Lashio in Shan State. Both incidents were not covered by insurance, The Myanmar Times said.
Despite the availability of insurance products, few banks have purchased insurance. According to state-owned Myanma Insurance, a campaign is being planned to promote and educate customers about the importance of having insurance, particularly in high-risk areas. A