29 March 2017
MYANMAR: SEZ Licences for Overseas Insurance Companies Mark First Step Towards Liberalisation
Overseas insurance companies can now apply for a licence to conduct business within the Thilawa Special Economic Zone (SEZ), the only such zone operational in the country. It is expected that the licences will be duly extended to cover two further SEZs – Kyaukphyu and Dawei – once they come on line.
Companies seeking to secure a licence need to demonstrate 10 years of relevant experience with regard to the insurance products they intend to sell. They also need at least US$1 billion in total assets or paid up capital and a minimum B+ credit rating from a reputable international rating agency, such as Standard & Poor’s. The cost of each licence is US$30,000, with a US$10,000 renewal fee paid annually. The issuing of such licences is seen as an initial step towards the overall liberalisation of the insurance sector in Myanmar.