Yangon-based Citizen Business Insurance Public Ltd (CB Insurance) has formalised a joint venture with Thai Life Insurance PCL (Thai Life) through an agreement signed on August 16 that will see both companies working together to offer new insurance products in the Myanmar market.
Part of the CB group of companies that includes Co-operative Bank Ltd, the agreement between CB Insurance and Thai Life came about after the government announced in late July further liberalisation of the local insurance market by giving approval for six foreign insurers to form partnerships with local insurers.
CB group chair U Khin Maung Aye said the partnership sees CB Life holding a 65% stake in the joint venture, with the remaining stake held by Thai Life. “The partnership will see Thai Life offer more life insurance products in Myanmar leveraging on its technology and market knowhow,” he said.
U Khin Maung Aye added that both companies will also work on offering new life insurance products in step with the development of the capital markets. “We aim for Myanmar people to have good money-saving and investment practices by offering these products,” he said.
U Khin Maung Aye noted that most people in the country have poor knowledge and preparations for their health and finances, which also creates challenges for the insurers.
Meanwhile, CB Insurance administrative director U Thaung Han said the insurance market will develop as the capital markets mature and that the company wanted to ensure that it becomes part of this process. “We’re making preparations to realise this,” he said.
Bangkok-based Thai Life was founded in 1942 and has over 80,000 representatives in addition to 300 branches in Thailand. CB Life was established in 2012 as the government started to free up the insurance market. -Translated