Myanmar will further develop its insurance industry with help from Japan, which will provide guidance and personnel support to create rules and products.
The formerly reclusive Southeast Asian nation of 50 million is now experiencing healthy economic growth after opening up, with more of its population owning cars, according to a report by Nikkei. The higher number of cars and a young population are conditions ripe for insurance expansion.
Myanmar, which is also in the process of liberalising its financial industry, will be assisted by Japan in revising its 1996 insurance law.
Last week, Myanmar’s Deputy Planning and Finance Minister Maung Maung Win received a support plan, including advice on various insurance matters, from Japanese Cabinet Office State Minister Takao Ochi.
The plan includes guidance on how to craft regulations to ensure insurers have sufficient funds for payouts, as well as product advice on motor and endowment insurance.
Maung said that while strengthening Myanmar’s insurance industry may take a long time, the country will be able to see it through with Japan’s assistance.
Officials from Japan’s Financial Services Agency will head to Myanmar to assist the building of financial infrastructure. Several private-sector insurers from Japan will visit Myanmar in the fall to lay the initial groundwork for their expansion plans and tie-ups with local insurers.