Following a recent announcement that Myanmar’s insurance market would soon open to foreign investment, on January 18, 2019, Myanmar’s Ministry of Planning and Finance issued a formal Request for Proposal (RFP) to life insurers, and Expression of Interest (EOI) Invitation Letters to life and non-life insurers, seeking to do business in Myanmar.
Life Insurers—Proposals for 100% Foreign Owned Company
The RFP is applicable only to life/composite insurers that intend to set up a 100% wholly-owned life insurance subsidiary in Myanmar. Three such licenses are available.
The RFP stipulates, inter alia, the proposal conditions, pre-licensing conditions, process for submission of proposals, licensing timeline, and the selection and evaluation criteria which must be strictly adhered to in order for a proposal to be valid.
The closing date for submission is March 1, 2019, but any requests for clarification of any of the points raised in the RFP must be sent by January 28, 2019.
Life and Non-Life Insurers—EOI in Forming a Joint Venture
The EOI invitation letters have been sent to local life and non-life insurance companies, inviting them to express their interest in forming a joint venture with a foreign insurer that has a local representative office in Myanmar (as of December 31, 2018). JV partnership is exclusive for both the foreign applicant and the local partner, who may only enter into one such JV each. However, applicants do not need to have already secured a prospective joint venture partner in order to submit an EOI.
The EOI invitation letters include an EOI form and a list of accompanying documents that must be completed and submitted by February 11, 2019.
It is important to note that applicants are allowed to respond to either the RFP or an EOI invitation letter, but not both at the same time. However, those who are unsuccessful in the RFP process may later be offered an opportunity to submit an EOI.