Insurance Business Regulatory Board (IBRB) on May 12 issued two new directives - (4/2020) and (6/2020) which are reinsurance and three new categories of general insurance.
The three new categories are: Industrial All Risk, Construction All Risk/ Erection All Risk, and Bailee’s Liability Insurance. The aim is to widen insurance coverage in the country.
“All three types of insurance are widely used in business internationally. We usually receive enquiries from foreign investors about the availability of these insurance products. In Thilawa SEZ, businesses are required to hold these insurance products and this should be a requirement for all companies doing business in Myanmar, ’’ said U Soe Win Thant, joint secretary of the Myanmar Insurance Association.
The IBRB has also permitted insurance companies to provide reinsurance services. The purpose of permitting reinsurance is to maximize retention within the country, subject to proper and adequate diversification of risk, secure the best possible reinsurance coverage required to protect the interest of policyholders at a reasonable cost, and for the industry to develop technical capability and financial capacity.