A new rule allowing foreign insurers to operate in Myanmar has resulted in over USD 127 million in foreign direct investment (FDI), according to a report by the Myanmar Investment Commission (MIC).

The Ministry of Planning, Finance and Industry began issuing licenses to insurance providers wholly or partially owned by foreigners at the end of last November. A mere four months later, 11 new providers have begun operating in Myanmar, bringing with them a hefty round of FDI. Five of these, all life-insurance companies, are fully foreign-owned. They include  AIA, Chubb, Dai-ichi, Manulife and Prudential.

Insurance services, especially life insurance, have struggled to develop in Myanmar since the country’s transition to democracy. The decision to open the industry to foreign investors falls into an overall effort to develop Myanmar’s financial sectors through outside capital and expertise. New rule changes also allow foreigners to hold stake in Myanmar banks, and from this month foreigners are allowed to trade on the Yangon Stock Exchange. Overall, FDI has risen to USD 2.9 billion since October. The power sector has been the greatest recent source of foreign investment, accounting for around USD 1 billion in the last four months.