Myanmar insurance sector including crop insurance: new law, new systems
In Myanmar the Ministry of Planning and Finance (MoPF) announced on 2nd January 2019, that the country is now officially open for foreign companies in order to develop the Myanmar insurance sector.
©Mizzima News Myanmar
Myanmar Insurance Sector
MoPF invites both local and foreign insurance providers to submit so-called Expressions of Interest (EoI) and/or Requests for Proposals (RfP). Licensing of life and non-life insurance companies will be implemented according to the Myanmar Insurance Sector Liberalization Roadmap. The Financial Regulatory Department (FRD) will facilitate the clarifications and discussions on the EoI and/or the RfP. For more or detailed information, you can contact Mr Ye Wana Hlaing, Senior Economic and Commercial officer of the Economic Unit of the embassy, email: email@example.com.
Crop insurance is another crucial area for the development of agriculture that Myanmar has been working on for a long period of time, even during previous governments.
As an example, according to statistics, in 2012, about 400,000 acres (~162,000 hectares) of farmlands in the Ayeyarwady Region were damaged by flooding. Farmers are still in debt due to these floods that come about every three years while there is no system for them to recover their losses as there is no crop insurance system.
Based on many experiences of regional countries within ASEAN, the establishment of sustainable agricultural and food systems through the implementation of the crop insurance system between insurance companies, farmers and governmental departments, is regarded as being essential for farming and will benefit all those involved in the value chain as well as producers and farmers.
January 2018, the Myanmar government gave therefore green light to carry out a key pilot project for crop insurance. The permit that was granted was not meant for running already a crop insurance business, but for research and experimentation. As soon as results are available or other relevant information, we will inform you again.
See also the following links for relevant news articles, official announcement on insurance and crop insurance systems development in Myanmar.