The government is planning to launch an insurance association comprising the lone state-run insurance agency and private insurance organisations, a minister said.
“The association will include government-owned Myanma Insurance Enterprise (MIE) and private insurance companies, and will be set up as a non-governmental institution,” deputy union minister for finance Dr Maung Maung Thein said.
Similar associations in other countries emerged about 30 to 40 years after private insurance companies started operating, but in Myanmar, in about three months of allowing private insurance companies the association is planned to be established, the minister said.
However, the minister didn’t give any exact date of setting up the association.
U Aung Soe Oo, general manager of local insurance company IKBZ, said insurance industry will be bolstered through the introduction of this association.
“The association can educate the public and impart knowledge to the industry stakeholders. The market will definitely strengthen through this collaboration.”
The minister said local insurance company First National Insurance is collaborating with the government to prepare the draft bill for the association.
Currently, there are 12 private insurance companies in Myanmar besides MIE, and 11 of them have started their operations.