U.S. Embassy in Burma: USAID Supports Insurance Industry Reforms

YANGON, Burma, Aug. 2 -- The U.S. Embassy in Burma issued the following news release:

A fully competitive insurance market can improve the lives of Myanmar's people. At the family level, insurance makes it easier to handle unexpected and potentially catastrophic events. At the Union level, insurance companies can be a source of long-term financing, by investing insurance premiums in government bonds that can be used to improve public works such as roads and electricity. An expanded insurance sector is expected to generate more high-quality jobs.

Today, the U.S. Agency for International Development (USAID) Mission Director Teresa McGhie spoke to officials of the Myanmar Financial Regulatory Department (FRD) and business leaders from Myanmar and foreign insurance companies at the Myanmar Insurance Workshop Organized by FRD with support from Deloitte, the British Chamber of Commerce Myanmar, and USAID. Mission Director McGhie recognized the good work of FRD, a department of the Ministry of Planning and Finance, and other Myanmar officials in making the reforms needed to spur insurance sector growth.

"At USAID, we believe that private enterprise is the single most powerful force for lifting lives, strengthening communities, and accelerating self-reliance," Mission Director McGhie said. "Incentivizing greater private sector investment helps unlock new financing streams--and greater choice of approaches and partners--for development."

Through its Private Sector Development Activity, USAID has provided technical experts to assist FDR to implement its Insurance Liberalization Roadmap as part of Myanmar's Economic Development Plan, which includes drafting a new insurance business law and developing insurance sector regulatory capacities.

USAID invests more than $22 million a year to support private sector development in Myanmar.