Myanmar

Principal Legislation

• The State-Owned Economic Enterprises Law (1989) established insurance as a state monopoly in Myanmar. However, it included a provision allowing the state, with appropriate approvals, to form joint ventures or permit private enterprises to operate independently within monopolised sectors.
• Under the Myanmar Insurance Law (1993), Myanma Insurance was established as a state monopoly. It was empowered to form joint ventures or permit qualified private companies—under the State-Owned Economic Enterprises Law—to operate independent insurance businesses. However, motor third-party insurance and reinsurance remain exclusively under state control.
• The Insurance Business Law (1996) and the Insurance Business Rules (1997) outlined private company participation in insurance and licensing procedures. In the absence of newer legislation, private insurers are understood to still operate under these laws.
• Chapters III and IV of the 1996 Law created the Insurance Business Supervisory Board, with Myanma Insurance represented on the board. However, Myanma Insurance is not subject to the Board’s oversight.
• The Ministry of Finance and Revenue Producers’ Order No. 1/95, dated 30 December 1995, sets maximum compensation limits for motor third-party liability.
• The Third-Party Liability Insurance Rules (2 May 2003) specify the procedures for transacting motor third-party insurance with Myanma Insurance, as required under the 1993 law.

Supervision

The Insurance Business Supervisory Board (IBSB) is the main regulatory body overseeing Myanmar’s insurance industry. It operates under the Ministry of Finance and Revenue, through the Financial Regulatory Department (FRD), and is responsible for supervising private insurers, brokers, and agents.

Core responsibilities include:

• Reviewing and approving licences for insurers, brokers, and agents
• Setting requirements for capital, investments, and solvency margins
• Regulating how insurers assess their assets and liabilities
• Determining licensing fees, deposits, and annual contributions
• Authorising direct placements of insurance abroad when coverage isn’t available locally
• Issuing binding directives on product approvals, bancassurance, and reinsurance
• Appointing local or foreign experts to support regulatory work

The IBSB also plays a key role in industry development by implementing training programs, enforcing technical standards, and conducting compliance oversight.

Under Article 35 of the Insurance Business Law (1996), Myanma Insurance is exempt from IBSB oversight and operates as a self-regulated entity. The IBSB’s regulatory powers apply only to other licensed insurers in Myanmar.

Admitted/Non-Admitted

In Myanmar, non‑admitted insurance is not permitted. All insurance policies must be purchased through licensed local insurers unless specific approval is granted by the Ministry of Finance and Revenue.

Reinsurance is allowed, but local insurers are required to offer up to 10% of each risk segment to Myanma Insurance. If Myanma Insurance declines, the risk can be placed with qualified cross‑border reinsurers (CBRs), subject to regulatory conditions.

CBRs must be licensed in their home jurisdictions and maintain a minimum credit rating of BBB (Standard & Poor’s or equivalent). The maximum annual cession to a single CBR depends on its credit rating:

• A+ and above: up to 50%
• BBB+ to A: up to 40%
• BBB and BBB+: up to 20%

All insurers are required to submit their reinsurance programs to the Insurance Business Regulatory Board (IBRB) at least 90 days before the fiscal year starts. Periodic reporting on risk retention and treaty compliance is also mandatory.

A minimum retention of 20% is required for life insurance portfolios, and all reinsurance arrangements must align with the insurer’s financial capacity and risk appetite.

Compulsory Classes

• Motor third party liability.
• General liability for organisations which could cause damage to state or public life or property.
• Professional indemnity for insurance brokers.
• Property, marine and personal accident (PA) insurance for foreign investment enterprises.
• In May 2014 the Insurance Business Supervisory Board (IBSB) announced a new compulsory accident insurance for anybody travelling 100 miles or more on local roads.

Public sector employees must insure their lives and must purchase life insurance from Myanma Insurance.

State Involvement

Myanma Insurance is the only state-owned insurance company in Myanmar, authorised to transact both life and non-life (general) insurance.

It operates under the Ministry of Planning and Finance and holds a unique status in the market as a sovereign-backed entity.

Myanma Insurance plays a strategic role in the country’s insurance system, especially in areas involving:

• Government-linked risks
• National infrastructure and assets
• Sovereign liability exposure

The company continues to enjoy preferential rights in certain classes of business and is the designated recipient of risks that must be insured with a government entity, where mandated.

Private insurers are permitted in the market, but Myanma Insurance is exempt from oversight by the Insurance Business Supervisory Board (IBSB) under Article 35 of the Insurance Business Law (1996). It is therefore considered self-regulating.

Myanma Insurance also acts as the default channel for reinsurance of certain local risks and continues to play a role in allocating reinsurance capacity in some sectors.

Tariff Classes

Myanmar employs a free rated insurance market, meaning no statutory tariff schedules are enforced. However, all insurers must submit their rating methodologies to the Insurance Business Supervisory Board (IBSB) for preapproval before application.

Myanma Insurance, being state-owned, sets its own tariff rates independently. It is exempt from the requirement to obtain IBSB approval, although it maintains close working relations with the Board.

All private insurers operating in the same line of business must offer the same premiums, ensuring a consistent marketplace despite operating in a liberalised environment.

There are no tariff restrictions on fronting arrangements, allowing flexibility in pricing and structuring for policies issued through international underwriters.

Premium Taxes and Charges 

Non-admitted insurance is not permitted. All policies must be issued by locally licensed insurers.

For fronted policies, applicable premium taxes and stamp duties must be paid in accordance with local tax laws.

A minimum stamp duty of MMK 25 applies to all insurance policies, regardless of premium size.

State-owned enterprises, including those managing the national airline and ocean-going hull fleet, are exempt from stamp duty.

Reinsurance premiums are not subject to tax—no stamp duty or premium tax is imposed on reinsurance transactions.

Policy Language

Policy wordings generally follow international insurance standards and are accepted by local insurers, including Myanma Insurance, especially when fronting for foreign insurers.

Policies are typically issued in Burmese. However, foreign-invested enterprises may request policy documents to be issued in English or another preferred language.

Insurance policies are usually denominated in Myanmar Kyat (MMK). Policies may be issued in foreign currency if the policyholder maintains a foreign currency account. When a policy is written in foreign currency, premiums must be paid in that currency.

In Myanmar, Myanma Insurance is the sole entity authorised to place reinsurance, both treaty and facultative, on behalf of the domestic insurance market. The company maintains a number of small treaty arrangements with international reinsurers, primarily to support coverage for standard commercial lines. For risks that exceed its treaty limits, facultative reinsurance is used. Private insurers are not permitted to place their own reinsurance directly and must instead route all reinsurance placements through Myanma Insurance, in line with prevailing regulatory restrictions.

Myanmar does not have a domestic reinsurance market. All reinsurance activity is centrally handled by Myanma Insurance, the state-owned insurer, which is solely authorized to place reinsurance both locally and internationally. Private insurers are not permitted to engage in direct reinsurance placements.

Since the licensing of 12 private insurers in 2013, Myanmar’s insurance distribution network has steadily expanded. Agents are allowed to represent up to three insurers, including Myanma Insurance, which continues to distribute products directly through its nationwide network of 38 branches. Several private insurers have also opened branches in key regional cities, with more expected as market competition grows.

Partnerships between private insurers, banks, and automotive groups have led to a rise in bancassurance and dealer-based insurance offerings. While Myanmar law permits insurance brokers, this segment is underdeveloped. Currently, only one major international broker operates a representative office, and as of 2025, no local brokers hold a full licence.

Distribution patterns for life insurance closely follow those of non-life insurance.

Myanmar is exposed to various natural hazards, though insurance penetration is low due to affordability and limited awareness. Earthquake risk is concentrated along the northern Sagaing Fault, with coverage available at about 0.2% extra premium. However, uptake is minimal due to low industrial presence in those areas.

The southwest monsoon (May–October) brings strong winds, heavy rain, and occasional cyclones from the Bay of Bengal. Cyclone Mocha in 2023 caused considerable damage and highlighted rising storm intensity. Flooding is common during the monsoon season, especially along the Chindwin, Ayeyarwady, Thanlwin, and Sittaung rivers.

Slash-and-burn farming increases wildfire risk in upland regions, though such events are rare and not commonly insured. Tsunami risk is considered low; the 2004 Indian Ocean tsunami had little impact on Myanmar’s coast.