For Myanmar’s insurance sector joint-ventures (JVs) constitute a powerful mean to liberalize the market. Last April, the Ministry of Planning and Finance (MoPF) granted five foreign insurance providers the provisional right to be registered as a 100% foreign-owned life insurance subsidiary in Myanmar. Conditions are strict though. Firms must supply the minimum capital required under the Myanmar Insurance Business Law. They also need to obtain the green light from the Insurance Business Regulatory Board.

Therefore, the JV model could have a significant impact in the short term. Every insurance provider that did not make it to the list could opt for a JV model and may hold up to 35 percent of the partnership. This would significantly strengthen competition among market-participants, which would improve product quality and distribution for customers. Besides, foreign insurers are expected to bring over some skills and technical knowledge. They are likely to bring more advanced data-collection methods and provide some training to local talent for instance. On the flip side, foreign firms will be able to leverage a robust local distribution network and historical brand. Some important market-players pointed out that JVs would be the best way to modernize the financial sector altogether. To them, hard-skills, such as technology, can be bought but soft skills are in short supply.