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    Emerging Insurance Markets – Cambodia, Cuba, Myanmar

    Emerging Insurance Markets – Cambodia, Cuba, Myanmar – Forecasts and
    Industry Insights for Foreign Insurers:
    Press Release:

    DALLAS, August 6, 2014 /PRNewswire/ –
    A nascent insurance market is one that is small and newly developing,
    and those that have been opened for foreign investment offer significant
    opportunities to foreign insurers. Insights into the Cambodian, Cuban
    and Myanmar insurance industries are provided at length in a June 2014
    published report titled “Insight Report: Nascent Insurance Markets and
    Opportunities for Foreign Insurers” and available at
    Myanmar’s insurance industry began the transition from a
    centrally-planned operation to something closer to a free market in late
    2012. The five decade long monopoly of state-owned Myanma Insurance was
    ended, with the establishment of twelve domestic private insurance
    companies, three life insurers and nine composite insurers in 2013. Even
    more dramatically, the new democratic government has tentatively
    announced that it will open the industry to foreign insurers as well in
    Since the newly established private insurance companies will only
    complete their first year of operations in 2014, uncertainty remains
    over the total size of the industry. State-owned Myanma Insurance
    generated a total of MMK24.1 billion (US$28.6 million) in gross written
    premiums in the financial year ending March 2012. However, these amounts
    do not reflect the market’s true potential. The Myanmar insurance
    industry is highly underpenetrated, with only one out of 86 individuals
    holding an insurance policy. Insurance penetration as a share of GDP is
    currently only 0.05%. This means that the industry has huge potential
    for growth over the next decade. It is estimated that the country will
    eventually generate between MMK1.3 trillion (US$1.6 billion) and MMK2.4
    trillion (US$2.8 billion) of insurance premium revenue every year.
    Some multinational insurers have already begun preparations so as to be
    ideally positioned to enter the Myanmar insurance market as soon as it
    is opened to foreign investment. These companies include AIA, ACE,
    MetLife and Prudential, which have all obtained authorisation from the
    insurance regulator to establish representative offices in the country.
    Through these representative offices they can provide training and
    consultancy services to both domestic insurers and the country’s
    insurance regulator. This process will allow these multinationals to
    gain key strategic insights and contacts in the Myanmar insurance
    industry, and grant them an early-mover advantage that could be worth
    hundreds of millions in dollars once the market opens to foreign insurers.
    Although the market will likely prove lucrative for foreign insurers,
    regulatory risks loom large. Private insurers are only permitted to
    underwrite business in six of the forty-eight recognised insurance
    categories in Myanmar. State owned Myanma Insurance will retain its
    monopoly over the remaining forty-two categories. The country is also
    imposing very high capital requirements, of US$7.1 million for life
    insurers, and US$47.4 million for non-life insurers.
    Myanmar’s regulatory standards remain very basic and lack proper
    guidelines on the establishment of insurance companies, solvency
    requirements, reserve requirements, or reporting requirements. The
    country’s regulatory framework is still evolving, and new rules and
    regulations are to be expected at a moment’s notice. Hopeful foreign
    insurers will have to keep a close eye on the market if they don’t wish
    to be caught off-guard.
    Order a copy of “Insight Report: Nascent Insurance Markets and
    Opportunities for Foreign Insurers” research at .
    The untapped insurance industry of Cuba
    The insurance industry in Cuba was opened for private participation and
    foreign investment in 1997 under free-market economic reforms initiated
    by Fidel Castro’s then-communist government. However, with the high
    level of political risk, the Cuban insurance industry is yet to be
    explored by foreign insurers. Only state-owned bodies such as Esicuba
    SA, Esen, Asistur SA and Heath Lambert de Cuba SA operate in the country.
    The political and economic scenario in Cuba began to change when Raul
    Castro succeeded Fidel Castro to lead the communist government in 2008.
    From 2011, Cuba’s centrally planned socialist economy began the gradual
    journey to becoming a free market economy. The government eased out
    state control in many industries and permitted self-employment in 178
    economic activities. Private participation in the economy significantly
    increased personal wealth and gross national savings, creating increased
    demand for insurance. Economic reforms are expected to boost GDP growth,
    which has growing by 2-3% annually since 2010. The gradual economic
    liberalization is expected to encourage foreign insurers to explore the
    untapped insurance market in coming years.
    A private insurance market is yet to be established in Cuba and it is
    difficult to estimate its size. The state-owned Esicuba SA generated a
    total gross written premium of CUP99.8 million (US$4.2 million) in the
    financial year ending December 2011, with annual growth of 29.3% over
    the CUP77.2 million (US$3.2 million) gross written premium generated in
    2010. However, the industry has the potential to generate substantially
    greater revenues.
    Beginning of a new life insurance market in Cambodia
    Cambodia ended decades of economic isolation in 2000, when it made the
    transition to a free market economy. This followed bold economic reforms
    and economic liberalization, which triggered rapid growth over the next
    decade. The non-life insurance segment was formally established in the
    country in 2003 with the entry of private insurers. It grew rapidly
    during its initial phase of development and generated premiums of
    US$35.6 million in 2012. The Cambodian insurance industry has
    substantial potential for growth and is expected to continue to grow
    over the next decade to become a US$200.0 million industry by 2023. As
    of May 2014, six non-life insurers operated in the segment.
    The life insurance segment in Cambodia formally started in 2012 with the
    establishment of the state-owned life insurer Cambodian Life Insurance
    Company followed by foreign life insurers Manulife and Prudential. The
    untapped market has the potential to generate around US$80-90.0 million
    within a decade. Cambodia is an attractive investment opportunity for
    multinational insurers and more are expected to enter the market in the
    next five year.
    Not yet sure about making a purchase decision on this report? Get your
    questions answered through before
    deciding to buy “Insight Report: Nascent Insurance Markets and
    Opportunities for Foreign Insurers”.
    Published in August 2014, “The Insurance Industry in Zambia, Key Trends
    and Opportunities to 2018″ is a 145 pages market research report that
    says Zambia ranks among the top 15 fastest-growing economies globally,
    and its economy continues to be strong, with the country having achieved
    middle income status in 2011. Zambia’s economy grew at a CAGR of 14.9%
    during the review period, and is estimated to grow by 7.1% in 2014. Led
    by relatively stable economic growth and a progressive regulatory
    environment, the country’s insurance industry registered strong growth
    during the review period, driven primarily by the non-life segment,
    which accounted for 63.7% of the industry’s gross written premium value
    in 2013. Gross written premium grew at a review-period CAGR of 15.6%,
    and is projected to grow at a CAGR of 13.9% over the forecast period. A
    number of insurance companies entered the industry, attracted by the
    positive growth potential and low penetration rate, which stood at 1.37%
    in 2012, compared with the African average of 3.65%. Complete report is
    available at
    Another 146 pages research “The Insurance Industry in Bermuda, Key
    Trends and Opportunities to 2018″ published in Aug 2014 says that
    despite continued low investment yields and moderate economic growth in
    Europe and the US, Bermuda’s insurance industry continued to thrive in
    2013. Gross written premium increased at a rate of 7.4% from 2009 to
    2013. The growth was primarily driven by low losses from catastrophes
    and proper reserve development in 2012. As a result, leading industry
    participants recorded a significant improvement in combined ratio,
    depicting strong underwriting performance which in turn supported their
    risk-adjusted capitalization. Complete report is available at
    Explore more reports on banking and financial services industries at .

    Source: Emerging Insurance Markets – Cambodia, Cuba, Myanmar – Forecasts
    and Industry Insights for Foreign Insurers: –
    Yahoo Finance Canada –