Promoting Economic Development through Insurance Sector Liberalisation
Project Title: Prosperity Fund – Insurance Sector Liberalisation Location: Myanmar Client: The UK Foreign & Commonwealth Office (FCO) Date: May 2016 – March 2017
Montrose is generating evidence to support insurance market development and improved regulation of the sector in order to help promote economic prosperity in Myanmar.
Myanmar endured decades of economic isolation and is now transitioning to a free-market economy. Crucial to this transition, is a liberalised insurance market. This has previously been blocked, but with the new incoming National League for Democracy (NLD) government, who have expressed interest in insurance, the opportunity for a strong coordinated effort has arrived. At present, the state-owned monopoly, Myanmar Insurance does not offer comprehensive international standard insurance, leaving businesses unprotected or having to buy offshore insurance through foreign brokers. Without a liberalised insurance sector there is no competition in the insurance market, resulting in inflated prices not relative to average wages, negatively affecting social development and further deterring cross-border trade through the lack of protection of investors’ assets and risks.
Montrose has been contracted by the FCO, as part of the Cross-Government Prosperity Fund, to generate evidence to support insurance market development and sound regulation through government mind-set change on enabling regulatory frameworks and direct support to stakeholders to understand the benefits of insurance. A body of advocacy material will be launched to government, businesses, journalists and the public, demonstrating the strong links between insurance and economic growth. A series of information workshops will then be conducted, targeting economic and social commentators, policy makers, and potential insurance customers. The intention is that through awareness raising and advocacy the insurance sector will become both liberalised and suitably regulated in order to help promote economic prosperity in Myanmar.