A Market in Transition

Myanmar's insurance sector, once a promising frontier market on a path of liberalization, stands at a precipice in 2025. Four years after the military coup of February 2021, the industry is caught in a maelstrom of escalating civil war, profound economic collapse, and deepening international isolation. This report provides an exhaustive analysis of the insurance landscape in 2025, evaluating the regulatory framework, market structure, performance metrics, and key segments against the backdrop of this national crisis. It leverages official data from Myanmar's government bodies, critically triangulated with analysis from international financial institutions, industry specialists, and geopolitical think tanks, to present a realistic and nuanced assessment. The analysis reveals a market under extreme duress. The State Administration Council’s (SAC) regulatory arm, the Insurance Business Regulatory Board (IBRB), continues to issue sophisticated directives on accounting standards, solvency, and investments, creating a façade of modern governance. However, this regulatory push is fundamentally disconnected from the on-the-ground reality of hyperinflation that erodes capital, a currency in freefall that destroys the value of long-term policies, and a security environment that makes risk uninsurable. The life insurance segment faces a crisis of value proposition, while the non-life segment is crippled by unmanageable political and catastrophe risks and the withdrawal of essential foreign reinsurance capacity. Foreign insurers, who entered the market with optimism following the 2019 liberalization, now face a perilous operating environment defined by sanctions, reputational risk, and physical danger, prompting some to curtail operations or exit projects. Local private insurers struggle for survival, while the state-owned Myanma Insurance has become the insurer of last resort for the most severe risks, its dominance reinforced by the crisis. Looking ahead, the planned elections in late 2025 or early 2026 are not a potential solution but a critical risk multiplier. This report utilizes scenario-based forecasting to chart the potential paths for the insurance sector post-election. The most probable scenarios—a "Façade of Stability" following a controlled election or a "Protracted Stalemate" if polls are delayed—both point to a continuation of the current crisis, with no meaningful market recovery. A less probable but highly impactful "Escalation and Fragmentation" scenario would lead to the total collapse of the formal insurance market. Strategic recommendations are tailored for this grim reality. For incumbent insurers, the focus must be on survival, dynamic risk management, and crisis-driven product innovation toward short-term, affordable protection. For potential investors, the market is currently unviable, and a watching brief from a distance is the only prudent course. For policymakers and international stakeholders, the priority must shift to consumer protection and laying the groundwork for a post-conflict recovery, including technical assistance and planning for a future reconstruction insurance facility. The crisis is forcing a fundamental redefinition of insurance in Myanmar, away from long-term wealth creation and towards immediate, tangible disaster relief and risk mitigation.

Player Landscape

As of early 2023, official data from the FRD indicated a total of 27 licensed insurance companies operating in Myanmar. This includes the state-owned Myanma Insurance, 11 local private insurers that entered the market from 2013 onwards, and a new wave of foreign-invested entities licensed in 2019 and 2023. The foreign contingent is composed of five 100% subsidiary foreign life insurers, three joint-venture (JV) life insurers, and three JV non-life insurers, with an additional life and non-life JV licensed in January 2023.7 Key players frequently cited in industry analyses include the state-owned Myanma Insurance; major local players like IKBZ Insurance and Grand Guardian Insurance; and JVs or subsidiaries involving prominent international brands such as AYA SOMPO (a JV with Japan's Sompo), GGI Tokio Marine (a JV with Tokio Marine), AIA, and Prudential.20 The Dominance of Myanma Insurance (MI) Despite the entry of private competition, Myanma Insurance remains the major player in the market, particularly in the non-life segment.6 Its dominance is structurally embedded. As a state-owned enterprise, MI enjoys the ultimate financial backstop: the government of Myanmar assumes all its liabilities under the Myanma Insurance Law, meaning it can never be liquidated.23 This provides an unparalleled perception of security. MI offers a vast portfolio of approximately 50 different types of insurance, dwarfing the limited product range of private companies.6 Crucially, it retains a monopoly on several compulsory insurance lines. For instance, third-party liability insurance for motor vehicles, required for annual license renewal, must be purchased from MI.19 Likewise, foreign investment projects and enterprises that may cause loss to state property are often required to effect compulsory General Liability Insurance with MI.24 This captive business provides a substantial and stable premium base. Furthermore, MI holds a privileged position in the reinsurance market, being the recipient of the compulsory 10% cession from all other insurers in the market.15 In the current environment, where private insurers are withdrawing terrorism and war risk cover, MI has become the de facto insurer of last resort for the nation's most severe risks.19 Local Private Insurers The 11 local private insurers licensed since 2013 operate in a much more constrained environment.3 Many are affiliated with larger domestic conglomerates and banks, such as IKBZ Insurance being part of the Kanbawza (KBZ) Group, which provides a key distribution channel and client base.25 Historically, their ability to compete has been limited. The IBRB sets standardized premiums and policy terms, forcing companies to differentiate themselves primarily on customer service rather than on price or product innovation.18 They operate with a more limited product range, focusing on core lines like life, comprehensive motor, and fire insurance.6

• Foreign Insurers: A High-Risk Bet. The opening of the market in 2019 was a landmark event, attracting significant interest from global and regional insurance giants.28 The framework allowed for 100% foreign ownership in the life insurance sector, while non-life (general) insurance required the formation of a joint venture with a local partner, typically with a foreign majority shareholding of up to 65%.18 This led to the entry of players like AIA, Prudential, Dai-ichi Life, and JVs involving Sompo and Tokio Marine. However, these foreign entities now find themselves in an extraordinarily precarious position. They face immense operational, reputational, and compliance risks. Operating in a conflict zone is physically dangerous and logistically challenging.32 Association with the SAC regime carries severe reputational damage and the risk of consumer boycotts in home markets. Navigating the international sanctions landscape, particularly the FATF blacklisting of Myanmar, is a compliance minefield.32 There is emerging evidence of foreign entities disengaging; for example, Japanese companies, including an insurer, involved in the Thilawa Special Economic Zone port project are reportedly exiting due to the project's links to a sanctioned military conglomerate.34 The strategic retreat of foreign insurers serves as a crucial bellwether for the health of the broader Myanmar economy. The initial wave of entries by major international insurance firms was a powerful vote of confidence in the country's economic liberalization and growth potential.30 Their current predicament—marked by operational paralysis, compliance nightmares, and potential exits—is an equally powerful signal of the country's precipitous decline.33 This shift is driven by a confluence of factors: the direct risk of violating international sanctions, the reputational toxicity of any association with the junta, the physical impossibility of operating safely in a warzone, and the collapse of the consumer and commercial markets they intended to serve. The implications of this extend far beyond the insurance sector, creating a "de-risking" cascade that chokes off other forms of foreign direct investment. Insurance is the bedrock of commerce; without access to political risk insurance, trade credit coverage, and asset protection, other industries such as manufacturing, logistics, and energy cannot function. Financial institutions are explicitly noted as being unwilling to support transactions linked to conflict zones or sanctioned entities, effectively blocking the financial lifeblood of foreign investment.35 Therefore, the sentiment and actions of foreign insurers are not merely an industry-specific issue; they are a critical bottleneck for the entire formal economy and a leading indicator of Myanmar's deepening economic and political isolation. A range of products are now targeted at the middle class, including:
• Research by: Sonny Amo for MyanmarInsurance.com.
• Date: 8-August-2025.

The Pros

• Financial Security: Provides a safety net against unforeseen events like illness, accidents, or death.
• Peace of Mind: Knowing you and your family are protected can reduce financial anxiety.
• Encourages Savings: Endowment and life insurance policies can act as a disciplined savings tool.
• Growing options beyond state monopoly: Since liberalization, a widening range of local and private insurers offer life, health, casualty and micro‑insurance products—better suit mid‑class demand for tailored coverage.
• Consumer willingness to pay (WTP): Surveys show ~75% of general adults and over 90% of Social Security Scheme (SSS) members are willing to pay premiums—typically 2,000‑4,000 MMK/month (~1.8‑3.6 USD)
  pmc.ncbi.nlm.nih.gov +1
• Preference for monthly, no‑co‑payment plans: . Middle‑income Myanmar people favor monthly payments, managed by trusted institutions (usually government/SSS), and prefer minimal or zero copayments—even willing to pay up to 4% of income if no copay is required pmc.ncbi.nlm.nih.gov +1

The Cons

• Cost: Premiums can be a significant financial commitment.
• Complex Products: The terms and conditions of insurance policies can be difficult to understand.
• Potential for Claim Rejection: Claims can be rejected if they fall under policy exclusions or if procedures are not followed correctly.
• Low Public Trust: Decades of a state-controlled economy have led to a general lack of trust in financial institutions for some.
• Low awareness and understanding: Only 34% of general adults and 61% of SSS members have basic knowledge about health insurance—information gaps remain major obstacles pmc.ncbi.nlm.nih.gov +1
• Trust concerns and perceived value: Positive perceptions of insurance benefits (return, financial protection, trust) remain weak even among those willing to pay—it reduces uptake if people doubt “what’s in it for me.”
• Coverage limited to Yangon region samples: Most data is from Yangon; rural and remote middle‑class segments may have quite different views and needs.
• Regulatory slowness and limited foreign licences: Even though globally active insurers applied, Myanmar hesitated over full licences, limiting competition and innovation researchgate.net +1 , Oxford Business Group .