As Ministry of Planning and Finance (MOPF) allowed foreign insurers to operate in Myanmar insurance market in January, local insurance providers have been encouraged to cooperate with the foreigners to become more competitive in providing their services. Citizen Business Insurance (CB Insurance), Capital Life Insurance, AYA Myanmar Insurance, IKBZ Insurance and Grand Guardian's life insurance form Joint Venture with Foreign Insurers.
Citizen Business Insurance (CB Insurance) form JV with Thai Life Insurance, which is based in Thailand and Meiji Yasuda Life Insurance, will gain a foothold indirectly through its 15% stake in Thai Life Insurance. Capital Life Insurance with Taiyo Life Insurance and AYA Myanmar Insurance with Sompo Holdings. IKBZ Insurance with MS&AD Insurance Group Holdings subsidiary Mitsui Sumitomo Insurance and Grand Guardian's life insurance (5 billion yen) with Japan's Tokio Marine Holdings (35% stake) and Nippon Life Insurance (2 billion yen).
On April 5, the Ministry of Planning and Finance announced AIA Company, Chubb Tempest Reinsurance, Dai-ichi Life Insurance Company, Manufacturers Life Insurance and Prudential Hong Kong were granted licenses to operate wholly owned subsidiaries in Myanmar.
U Yan Paing, Managing Director of Capital Life Insurance, said: “We will be able to benefit from the technical knowledge and experience gained through a joint venture with a foreign insurance provider. In return, the foreign entity will also gain from our understanding of the local market and distribution network. We expect the deal to be successful.”