After a seven-year period of waiting, the process for the opening up of Myanmar’s insurance industry in Myanmar looks set to begin in earnest starting in 2019 according to Tony Picon from New Asia Property Myanmar.

"Foreign insurers with hundreds of years’ worth of expertise along with eager local companies are poised to finally play a driving role in the sector’s development. Insurance in Myanmar is primed to move well beyond today’s low base into a modern, international enterprise that can bring enormous economic and social benefits to the country and its real estate sector," says Tony in his latest Myanmar Insurance Report May 2019.

At a glance:

• Government finally makes keys decisions for future liberalisation
• Key foreign life insurance companies ready for 100% owned operations
• Joint-ventures in the making for the general (non-life) insurance segment
• Myanmar offers significant growth opportunities in the short to long term
• The real estate sector will benefit in different ways from the new insurance direction

Related reading: JV's on the rise as Japanese Insurers move into Myanmar

The report refers to the positive effects on Myanmar real estate:

It is estimated that around half a million people are employed in some capacity in the insurance industry in Vietnam.

"Although Myanmar has some way to go before coming close to this figure, it shows that with a successful liberalisation process Myanmar can reap the reward with a significant number of relatively skilled jobs that will positively impact the office market. Many of those of these jobs will handle the selling and administering of insurance policies," says Picon.

"Insurers want to reduce claims and the insured want cover and also lower premium payments for their properties. As a result insurance provides a market-driven regulatory system that helps to reduce risk such as through safety improvements to buildings specially to prevent fires and other damage. The effect will be a general upgrading of construction quality towards more international standards."

"If the reforms to the insurance industry do take place as promised the impact may not be dramatic to begin with but over time will play a fundamental role in the long term economic and social development of Myanmar Click here to read the New Asia Property Myanmar Insurance Report May 2019," says Picon. 

Click here to download the New Asia Property Myanmar Insurance Report May 2019.

For more information about the report or the Myanmar property market email Tony Picon via the contact details below.

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