05 Apr 2019

Prudential selected as a “preferred applicant” for wholly-owned life insurance licence by Myanmar government

Yangon, Myanmar, 5 April 2019 – Prudential plc, one of the world’s leading financial services groups, has been selected as a “preferred applicant” for the licence to establish a wholly-owned life insurance business in Myanmar. The selection was announced by the Ministry of Planning and Finance (MoPF) on 5 April and is a key step in the process to receive a full licence to provide life insurance products and services to the Myanmar population.

Mr Nic Nicandrou, Chief Executive of Prudential Corporation Asia, said, “We are very grateful for the support we have received from the Myanmar government. Prudential has been operating in the region for more than 95 years, serving the evolving needs of over 15 million customers. Through our representative office, which opened in 2013 and with this new licence, Myanmar will become our 13th life insurance market in Asia. We are looking forward to the opportunity of helping families and communities in Myanmar, so they can achieve their financial aspirations and life goals through our world-class suite of products and solutions.”

The demand for life insurance products in Myanmar is expected to grow rapidly. Myanmar is one of the fastest-expanding economies in South East Asia, with gross domestic product expected to grow to US$200 billion by 2030^[1]. The country has a sizeable population of around 53 million^[2] as well as a growing middle and affluent class, which is expected to account for 15 percent of the population by 2020^[3].

Mr Nicandrou added, “The continued expansion and liberalisation of Myanmar’s life insurance sector is expected to bring significant benefits to the country, including job creation, inflow of quality foreign direct investment and the development of long-term capital markets. By leveraging our extensive experience and strong track record in Asia, we are committed to playing a vital role in accelerating the Myanmar government’s efforts to develop its country’s financial services industry whilst serving the long-term protection and savings needs of its population.”

“Preferred applicants” are required to fulfil a set of pre-licencing conditions, following which they will receive a licence to offer life insurance products in Myanmar from the MoPF.

^[1] McKinsey & Company: https://www.mckinsey.com/~/media/mckinsey/featured%20insights/Asia%20Pacific/Myanmars%20moment/MGI_Myanmar_Full%20report_June%202013.ashx

^[2] World Bank: https://data.worldbank.org/indicator/SP.POP.TOTL

^[3] BCG: https://www.bcg.com/publications/2013/globalization-vietnam-myanmar-southeast-asia-new-growth-frontiers.aspx

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Note to editors:

Since establishing its representative office in Yangon in 2013, Prudential has been working closely with Myanmar’s government and partners on activities to support the economic growth and welfare of the country and its communities. Key activities include:

• Organised several life insurance-related knowledge-sharing workshops for key stakeholders in Myanmar on various topics, including corporate governance, product development, regulatory/supervisory frameworks and technology trends.
• Co-sponsored the inaugural World Savings Day Forum in Yangon in 2018, aimed at raising people’s awareness of the importance and benefits of saving.
• Community investment activities under Prudence Foundation, including the Cha-Ching financial education programme for children, as well as the SAFE STEPS community-wide disaster preparedness programmes.
• Prudence Foundation has partnered with the Ministry of Health in 2018 and 2019 to develop Myanmar’s first Emergency Medical Technician’s training centre in Naypyidaw, which was opened in January 2019.