Page 27 - WTW Asia Insurance Market Report
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Myanmar 	                                                     Philippines 	

“The demand for different risk products                       WTW is supported by Winebrenner & Inigo Insurance Brokers Inc. in the Philippines

by both local and international investors                        The market in the Philippines was soft in 2016.
                                                                 Insurance penetration remained low at 2% due to
is driving innovation in Myanmar”                                limited affordability and lack of insurance education
                                                                 among the general population. The volume of new
   Myanmar is highly regarded as one of the most exciting        business entering the market has been nominal for
   investment opportunities of our generation following          the past 3 years, pushing insurers to cut rates in order
   recent political reforms and the lifting of US sanctions.     to remain competitive. In order to prevent rates from
                                                                 dropping to unreasonably low levels, the Insurance
   However, there are considerable challenges that               Commission in Philippines mandated a minimum
   accompany such opportunities. Myanmar ranks 170th             premium rate of 0.05% for the typhoon and flood lines
   out of 190 countries on the World Bank’s Ease of              of business, and 0.10% for the earthquake line of business.
   Doing Business league table with registration and
   sourcing finance cited as some of the main challenges.        The non-life insurance sector displayed growth,
   Myanmar also faces significant natural catastrophe            mostly driven by the demand for micro-insurance. The
   exposures such as typhoons, flood and earthquake.             Insurance Commission issued a Circular letter in April
   Therefore, the insurance industry plays an important          2016 containing regulations for the provision of health
   role in supporting investment in Myanmar, protecting          micro-insurance products and services with the aim of
   capital investment, offering stability to revenues and        inclusive health insurance for the general population,
   assisting in attracting debt financing.                       especially the low income and informal sectors. A
                                                                 drastic uptake of micro-insurance is anticipated in the
   Currently, there are 24 insurance representative              coming years.
   offices in Myanmar, 6 of which are brokers. A
   continuous decline in insurance premium rates is              The market is not expecting any drastic changes in
   expected and wider coverage can be achieved due to            the following year. Insurers are looking forward to
   increased competition and greater market capacity             new infrastructure projects coming into the country
   from international players. 2016 did not see any              next year under the new administration, but this is
   significant losses; however, small losses were reported       dependent on the amount of new investment entering
   due to floods and a small fire.                               the country.

   There remain a number of restrictions that apply to
   local insurance companies which limit their capacity
   or ability to support large and complex risks. However,
   the market is very positive about the changes that are
   happening in Myanmar and market/industry players
   are committed to the development of the insurance
   industry in the coming years.

                                                              27Asia Insurance Market Report 2016
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