SET-listed Bangkok Insurance (BKI) is considering expanding its operations to other promising Asean markets, including Myanmar.
Chai: Clear regulations needed
The firm has been studying the possibility of setting up shop in Myanmar after that country's regulators decided it would issue licences to foreigners. Until recently, Myanmar authorities only granted insurance licences to local operators, said Chai Sophonpanich, chairman of Bangkok Insurance Foundation.
If it does decide to expand to Myanmar, BKI expects to collaborate with partners there, he said.
Regulators in Myanmar are expected to grant insurance licenses to foreign investors next year. Initially, licences will be granted to foreigners doing business through joint ventures with local firms. There are eight local insurance players in the Myanmar market.
"We would like to wait for clearer regulations, especially in regards to business models and registered capital requirements," said Mr Chai.
For local players, the Insurance Business Supervisory Board requires minimum capital of 6 billion kyats (140 million baht) for life insurance businesses. Non-life insurance requires 40 billion kyats. For composite insurance, the capital requirement rises to 46 billion kyats.
Insurance firms in Myanmar are still small, so there is opportunity for growth, he said.
BKI, the country's third-largest non-life insurer by total premium payments, has a presence in the Philippines, Cambodia and Laos. The company also carries out regional operations alongside Asia Insurance (Hong Kong), and via PT Asuransi Central Asia (Indonesia) through a joint venture with a local company.
The firm expanded in Laos in September 2016 through Bangkok Insurance (Lao), a joint-venture company in which it holds a 45% stake. BKI aims for its Laotian operations to break even by 2018. BKI also acquired 15% of Bangkok Life Assurance (Cambodia), a joint joint-venture company set up last year.
BKI has been operating non-life insurance businesses in neighbouring countries for 15-16 years.
