IKBZ Insurance launched its new insurance company which is fully dedicated to life insurance products20 Sep 2019
IKBZ Insurance on Tuesday announced the launch of IKBZ Life, a new insurance company fully dedicated to life insurance products, in compliance with regulations by the Insurance Business Regulatory Board (IBRB).
IKBZ Insurance is a general insurance company which obtained preliminary approval to operate a joint venture with Japanese insurance provider Mitsui Sumitomo Insurance on July 31. Final approval is expected on October 4 at the earliest.
The JV will offer general insurance products while IKBZ Life will focus on products linked to life insurance including group health insurance, long term whole life insurance as well as an education savings plan.
“By creating a separate legal entity we are not only complying with government requirements, we are also simplifying our offerings for potential customers. Clients interested in life insurance will have a dedicated company to support them, whereas customers looking to protect their assets will continue to be served by IKBZ Insurance,” said U Nyo Myint, vice chair of IKBZ Insurance.
The restructuring will give both companies greater room for specialisation and innovation, allowing each to target specific customers with the right products.
Results of a recent survey conducted by IKBZ Insurance revealed that the difficulty in understanding insurance among potential customers is the greatest hurdle to business.
Myanmar’s insurance industry is expected to grow exponentially over the coming decade and is expected to reach a comparable size to the regional average of 5pc to the country’s GDP. Total insurance penetration in Myanmar is currently just 0.1pc.
With the opening of the insurance market to foreign competitors, more options will become available to potential customers but it also means that more must be done to ensure that customers are well informed about their options, U Nyo Myint said.
As the market matures, more consumer-focused products are expected to come online and the battle for market share will intensify, according to IKBZ Insurance.
(The Myanmar Times: https://www.mmtimes.com/news/ikbz-insurance-restructures-incorporate-life-options.html )