Myanmar Insurance to reform insurance system

Myanmar Insurance to reform insurance system

Published on Wednesday, 03 July 2013 19:16

The state-owned Myanmar Insurance has announced it will reform its insurance system due to low take-up of insurance, according to company officials.

"The take-up of insurance is low because the insurance is based on salary in the current insurance system. So, we are planning to change to the system that offers interest rates. I think more people will take up insurance after the system has been changed," said Aye Min Thein, managing director of Myanmar Insurance.

He added that the insurers would only receive the same amount of money they have insured in the first place, even though the money value may have changed in time.

According to Minister of Finance and Revenue Dr Maung Maung Thein, only 300,000 people have insurance among the 60 million people in Myanmar due to weaknesses in distribution and attraction.

Last month, Myanmar permitted private firms to offer insurance services for the first time in more than 50 years. In the past, the state-owned Myanmar Insurance was the only insurance service provider in Myanmar.

Source: http://www.news.myanmaronlinecentre.com/2013/07/04/myanmar-insurance-to-reform-insurance-system/