Canada’s Manulife joins growing insurance fray

Canada's Manulife joins growing insurance fray

By Shwe Gu Thitsar   |   Monday, 02 June 2014

Manulife Financial Life Company from Canada became the 13th foreign insurance company to open a Myanmar representative office last week, said Daw Tint Tint Aye, an official with state-run Myanma Insurance.

"The earliest [foreign insurer] was a Japanese firm in 1996. Now there are 13, with the latest being Manulife Financial," she said.

Manulife – the largest life insurance firm in Canada – operated in Myanmar from 1903 to 1942, before leaving during World War II.

 "We're convinced Myanmar is on the threshold of a great opportunity," said Indren Naidoo, Manulife's executive for the region that includes Myanmar, according to Bloomberg. "Myanmar has a real opportunity here in terms of catching up with the kind of growth and development we've seen in other parts of this region."

Worldwide, Manulife manages some US$584 billion.

Although there are now 13 foreign firms with local representative officers, they are restricted from working with local companies or offering insurance.

Deputy Minister of Finance and Revenue U Maung Maung Thein said that while the number of representative offices for foreign insurers is increasing, they still require permission before they can begin work.

"Local private firms offering insurance only opened recently, and their experience is not enough [to compete with international firms]," he said. "If foreign firms are allowed now, it could damage local private companies – they still need time."

Along with Canada's Manulife, there are representative offices from Singaporean, American, Japanese, Korean, Hong Kong and German insurance firms.

Although domestic private insurance firms already in operation may be wary of competition, some say the opening of the representative offices has benefited the industry.

"Officials from foreign companies get many requests to teach insurance classes, and this also gives them the opportunity to build relationships with local companies," said U Than Zaw, managing director of Ayeyar Myanmar Insurance company.

U Than Zaw said foreign firms may be sizing up potential partners when the doors are opened to them.

"They are gaining opportunities to work. They might be deciding which companies they should work with when there is permission," he said. "For our company it is also advantageous to have our staff trained by foreign experts."

Translated by Hein Htet Aung

Source: http://www.news.myanmaronlinecentre.com/2014/06/05/canadas-manulife-joins-growing-insurance-fray/