LICENSES will not be granted to foreign companies to operate insurance services in the country this year, according to Finance Deputy Minister DrMaungMaungThein.
Currently, three foreign insurance firms are enough to provide services to the companies in the Thilawa Special Economic Zone, the deputy minister said.
Currently, three Japanese companies- Sompo Japan Insurance, Tokai Marine Insurance and Sumitomo Insurance- have won licences to render insurance services within the Thilawa Special Economic Zone, a joint venture in which Myanmar has a 51% stake and Japan a 49% stake.
No more foreign insurance companieswill be allowed to operate in the economic zone, with the deputy minister saying that business firms from 13 foreign countries are currently having 19 factories constructed in Zone A.
The Myanma Insurance Enterprise, a government-owned company, offers life and general insurances including fire insurance, comprehensive motor insurance, fidelity guarantee insurance, cash in safe insurance, cash in transit insurance and marine cargo insurance.
However, foreign companies are limited to operation of life, fire and motor insurance services.
According to sources close to the ministry, permission is granted to foreign insurers with 30 years of experience and US$3 billioninvestment who have opened their offices in the country for three years.