Myanmar SEZ now open to insurers

Myanmar is opening up its Thilawa special economic zone near Yangon to international insurance companies, part of a market liberalisation effort expected to gain momentum this year.

The government does not allow foreign insurers to offer their services outside of Thilawa, a Myanmar-Japanese joint venture and the country’s only operational SEZ. Only three Japanese insurers have permission to operate inside the zone: Sompo Japan Nipponkoa, Tokio Marine & Nichido Fire Insurance, and Mitsui Sumitomo Insurance, which all receiving licenses in 2015.

The government does not allow foreign insurers to offer their services outside of Thilawa — a Myanmar-Japanese joint venture and the country’s only operational SEZ. Only three Japanese insurers have permission to operate inside the zone: Sompo Japan Nipponkoa, Tokio Marine & Nichido Fire Insurance, and Mitsui Sumitomo Insurance, which all received licenses in 2015.

Thant Zin, a director in the finance ministry’s Financial Regulation Department, told the Nikkei Asian Review that letting foreign insurers into Thilawa was an “initial step” in the insurance sector’s liberalisation.

Over 20 international companies have opened local offices in Yangon in the last three years, and are eagerly awaiting the chance to do business in a badly underdeveloped market.

Companies applying for an SEZ license need to prove 10 years operational experience in the type of insurance they intend to provide, at least USD1 billion in total assets or paid-up capital and a minimum B+ credit rating from rating agencies such as Moody’s, Standard & Poor’s or Fitch, according to Zin.