Myanmar Insurance Retention 2023

Myanmar Insurance Retention 2023

Myanmar Insurance Retention 2023: An explanation of Myanmar’s insurance and reinsurance laws.

The Q&A provides a high-level overview of market trends and the regulatory framework in the insurance and reinsurance market, as well as definitions of an insurance contract and a reinsurance contract, rules governing insurance and reinsurance contracts, types of corporate structures an insurer may adopt, and rules governing insurers and reinsurers, including rules governing the transfer of risk.

As well as these topics, it covers taxation, dispute resolution, operating restrictions for insurance and reinsurance entities, monitoring and disclosure requirements for reinsurance, content requirements for policies and implied terms, insurance and reinsurance claims, remedies, and insolvency of insurance and reinsurance providers. Myanmar Insurance Retention 2023. Last but not least, it offers short descriptions and websites for Myanmar’s major insurance and reinsurance trade organizations.

Industry Trends – Myanmar Insurance Retention

Over the last 12 months, what were the significant trends in the insurance and reinsurance markets?

In 2019, there were significant changes to the insurance sector in Myanmar. Both the non-life and the life sectors of the market were exposed to a small amount of foreign competition. A new draft Insurance Business Law is also being prepared, and it is anticipated that it will be passed in the next years. Since it was drafted in 2019, this legislation has undergone public comment (see Question 40).

Due to restrictions on international insurance firms doing direct insurance business in Myanmar, government and local private insurance businesses predominated the industry up to 2019. However, the Tokio Marine & Nichido Fire Insurance Co. Ltd., Sompo Japan Insurance Inc., and Mitsui Sumitomo Insurance Co. Ltd. were granted permission by the Myanmar Insurance Business Regulatory Board (IBRB) to do business in the Thilawa Special Economic Zone. Other international insurance firms just maintained representative offices in Myanmar.

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However, in 2019, the IBRB awarded insurance business licenses to the five 100% foreign-owned life insurance firms Prudential, Dai-ichi Life, AIA, Chubb, and Manulife after a competitive bidding procedure.


The AYA Myanmar General Insurance Company and Sompo Japan Nipponkoa Insurance, Grand Guardian General Insurance Company and Tokio Marine, and IKBZ Insurance Company and Mitsui Sumitomo Insurance Company are among the non-life insurance joint ventures that the IBRB has approved.

Insurance companies, particularly international insurers, suffer uncertainties in their commercial operations under the present administration, which has been in power since 1 February 2021.


Prior to now, Myanma Insurance, a state-owned company, dominated the Myanmar insurance industry. It offers reinsurance among its around 50 other forms of insurance. Private domestic insurance providers, in contrast, may only provide a limited number of insurance coverage options, including:

  • term life insurance.
  • full coverage automobile insurance.
  • blaze protection.
  • Insurance for both cash-in-safe and cash-in-transit.
  • Fidelity protection.
  • insurance for marine freight.
  • insurance for travel.
  • Personal injury protection.
  • insurance for marine hulls.
  • Agricultural life insurance.

Other insurance types that the Ministry of Planning and Finance sometimes allows with the consent of the government.

Although it is yet too early to tell, it is anticipated that the entry of international rivals will have a substantial impact on Myanma Insurance’s operations.

A significantly wider variety of insurance products will be available in Myanmar according to the proposed Insurance Business Law.


Prior to this, international reinsurers were the only ones that the state-owned Myanma Insurance used to do business with for reinsurance. As a result, domestic private insurance firms were unable to provide direct reinsurance. All insurers will be able to provide reinsurance, nevertheless, under the terms of the proposed Insurance Business Law, which the IBRB will release.

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The Insurance Business Regulatory Board (IBRB) released Directive 4/2023 on May 12, 2023, which many observers believed would completely transform the insurance sector in Myanmar when it became effective on October 1, 2023. With some limitations, this directive will allow insurance firms (or cedants) to receive reinsurance from additional insurers or reinsurers in Myanmar or overseas.

Regulatory Structure – Myanmar Insurance Retention 2023

What are the key laws and agencies in charge of regulating the insurance and reinsurance industries in your country?

The two primary laws governing the insurance industry in Myanmar at the moment are:

  1. The third-party liability insurance regulations for Myanma Insurance are outlined in the Myanma Insurance Law of 1993.
  2. The private insurance industry’s version of the Insurance Business Law of 1996, as revised in 2015.

The fundamental regulatory concepts outlined in its rules are as follows:

The creation of the IBRB, establishment and licensing requirements (public or private limited companies must apply for a licence from the IBRB before operating), capital, deposit, reserve, and funds requirements, restrictions on license transfers, approval requirements for policies and premiums, liabilities of insurers, underwriters, and brokers, auditing, liquidation, administrative actions, and penalties for non-compliance are all covered.

Authorities overseeing the insurance industry also set additional rules and guidelines.

IBRB Directive 4/2023 serves as the reinsurance industry’s current regulatory structure.

In Myanmar, the following two main regulatory organizations are in charge of regulating the licensing of insurance enterprises and related operations for both local and foreign insurance companies:

  1. Under the Ministry of Planning and Finance (MoPF), the Financial Regulatory Department (FRD) is located at (
  2. Office of Insurance Business Regulation (IBRB).
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Which insurance and reinsurance operations, insurers, and jurisdictions are subject to regulation?

All private insurers are governed by the Insurance Business Law, whilst government-owned insurers are governed by the Myanma Insurance Law. IBRB Directive 4/2023 is the first regulation that reinsurers must follow. The new Insurance Business Law is anticipated to result in more rules for insurers and reinsurers.

Insurance and reinsurance contracts are not governed by Myanmar’s insurance legislation. Before insurance companies may offer their goods for sale to the general public, the IBRB must approve the insurance policies, regulations, conditions, and premium structures. The proposed Insurance Business Law won’t change this. Myanmar Insurance Retention 2023.

The term “takaful” is not recognized by the law in the insurance industry in Myanmar.

Brokers of insurance

How are insurance brokers governed? What kind of authorizations are needed?

Any individual or organization intending to start an insurance agency or brokerage business in Myanmar must first register with the DICA as a private or public company before submitting an application to the IBRB for an insurance business license. They should also

  • Use the required application form to submit a license application.
  • meet the criteria for paid-up capital.
  • Cover the license costs.

The proposed Insurance Business Law won’t change this.

Actuaries and insurance brokers might provide services linked to insurance (other than those that insurers, underwriters, and brokers provide).


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