Myanmar: Three private insurers yet to contribute to compensation fund
Source: Asia Insurance Review | Nov 2015
Three out of six domestic private insurance companies have yet to deposit the prerequisite capital of US$500,000 into a customer compensation fund, according to the Insurance Business Regulatory Board (IBRB), which is responsible for licensing insurers.
They are First National Insurance, Global World Insurance and Ayeyar Myanmar Insurance, reported the Eleven Myanmar news website.
A Myanma Insurance spokesman was quoted to say that among the six companies permitted to operate insurance business in dollars, three have yet to put in the required capital amount and are not yet operational. And it is only after checks are made, will they be given permission to operate. State-owned Myanma Insurance is the insurance sector’s largest player and serves as the supervisory agency.
The original $50,000-minimum fund contribution was raised by 10 times in August to meet competition from three Japanese insurance companies based in the Thilawa Special Economic Zone.
“When foreign insurance companies come to the Thilawa SEZ to provide insurance for factories that are worth millions of dollars, it is going to be difficult for domestic insurance providers to compete. So we allowed the foreign firms to enter the market as well as increased the deposit to $500,000 so that domestic companies will have a fighting chance,” said Dr Maung Maung Thein, Chairman of the IBRB and Securities Exchange Commission of Myanmar.
Apart from state-owned Myanma Insurance, there are 12 domestic private insurance companies in the country.