According to the Oxford Business Group, for most of the last half century Myanmar’s insurance sector was closed and monopolised, but it is now opening up to both domestic and international competition.
The transformation has been rapid and across the board.
However, for motor and premesis insurance there is still along way to go, as residents either cannot afford premiums of do not trust those selling cover. According to the goverment, only about 5 per cent of drivers have any insurance at all.
A dozen domestic private insurers have been formed since 2013, while a raft of foreign companies have opened representative offices in the country in that time. Three international insurers have even been allowed to conduct business domestically, although they are limited to the Thilawa Special Economic Zone.
The market remains imbalanced and highly controlled, with state-owned Myanma Insurance the dominant player, says Oxford Business Group.
True competition is not yet allowed, and foreign firms are being kept at a distance. But the first, crucial steps have been taken, and conditions are right for rapid development, it says.
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