Myanmar has granted license to five private companies to operate and write various kinds of insurance in the country, in a bid to bring greater transparency and more choices to customers.
State-owned organization Myanma Insurance has allowed companies including IKBZ Insurance Co, Grand Guardian Co, Aung Thitsar Oo Co, National Economy Public Co, and Aung Myint Mo Min Insurance Co, to operate in the country.
Myanmar Deputy Minister for Finance and Revenue Dr Maung Maung Thein was quoted by Elevenmyanmar.com as saying, "This is the first time in 50 years private companies have been given company licenses to run insurance business."
"Now, the emergence of private insurance firms will improve the market conditions, and what couldn’t be achieved in the past will be achieved now," Dr Maung Thein added.
As per the Myanmar’s finance ministry, private companies seeking to operate insurance business in the country will have to deposit MMK46bn ($53m) as paid-up capital with Myanma Economic Bank.
Among 20 applicants, nearly 12 private insurance organizations have been shortlisted since September 2012 and of them 5 were given license by the Myanma Insurance, while the rest will be licensed before the end of June this year.
Established in 1952, Myanma Insurance has been the sole provider of insurance services in the country for more than 50 years.