The DFDL Myanmar team featuring Bhawna Bakshi (Legal Adviser) and Rohan Bishayee (Legal Adviser) were quoted in the Myanmar Times Newspaper on the recent issuing of Myanmar licenses to five foreign insurers after a two-year delay.
On 5 April 2019, the Finance Ministry announced the granting of provisional licenses to these five foreign companies allowing them to establish wholly-owned life insurance subsidiaries and to issue life insurance policies in Myanmar.
Insurance penetration in Myanmar is very low, and it has been very challenging for foreign insurers to actively participate in this sector. Since 2013, only 11 local insurers have been granted licenses to operate.
These five foreign insurers were allowed to operate as they fulfilled the Finance Ministry’s pre-licensing requirements.
Bhawna and Rohan commenting on the next step of this permission noted that: “successful foreign life insurance companies will be required to submit an irrevocable and unconditional proposal bond of US$400,000 within 10 business days from the date of announcement.”
Foreign insurers that have not been granted a license can still form a joint venture with an existing local life insurance company.
The full Myanmar Times Article “Five foreign insurers granted Myanmar licences after two-year delay“ can be found here: https://www.mmtimes.com/news/five-foreign-insurers-granted-myanmar-licences-after-two-year-delay.html