Regulatory Oversight of Fire Insurance in Myanmar
The Role of the Insurance Business Regulatory Board (IBRB)
The liberalization and regulation of Myanmar’s insurance sector, particularly fire insurance,
are governed by the Insurance Business Regulatory Board (IBRB), which functions as the
principal regulatory authority established under the Insurance Business Law of 2019. The
IBRB operates under the Ministry of Planning and Finance (MoPF) and is mandated to
supervise, license, and monitor the operation of insurance providers across the country
(Pyidaungsu Hluttaw, 2019).
1. Establishment and Legal Basis
The IBRB was formally created under Section 4 of the Insurance Business Law (2019) with
the explicit authority to regulate both life and general insurance businesses. Its functions
encompass issuing licenses to insurers, approving new insurance products, setting
minimum capital requirements, and ensuring adherence to prudential norms. The fire
insurance subsector falls under the general insurance category, and hence is directly
regulated by the Board.
2. Licensing and Market Entry
The IBRB is empowered to grant licenses to domestic and foreign insurance providers.
Following the liberalization process initiated in 2013 and accelerated by the 2019 law, the
IBRB began issuing licenses to private and joint-venture insurers. Fire insurance, being a
risk-sensitive class of business, is subject to additional scrutiny regarding reinsurance
arrangements and capital adequacy (IBRB, 2020).
3. Product and Tariff Regulation
In accordance with Notification No. 2/2019 and related circulars, the IBRB regulates the
terms, conditions, and pricing of fire insurance products. It ensures standardization through
approved Standard Fire and Special Perils (SFSP) policy templates and mandates the use of
tariff rates based on occupancy and risk classification (ADB, 2020). The objective is to
prevent underpricing and ensure fair market competition while protecting policyholders.
4. Solvency Monitoring and Prudential Oversight
One of the Board’s core responsibilities is to ensure the financial solvency of insurers
offering fire and other general insurance products. This includes:
- Monitoring adherence to minimum paid-up capital and solvency margins.
- Overseeing reinsurance treaties to minimize concentrated fire risk exposure.
- Conducting periodic financial audits and risk-based inspections (IBRB, 2019).
5. Consumer Protection and Claims Oversight
To enhance public trust and promote ethical business practices, the IBRB issues guidelines
for claims handling and dispute resolution. Fire insurance claims, often involving large
property losses, are monitored by the Board for fairness, transparency, and efficiency in
settlement (Myanmar Centre for Responsible Business, 2021).
6. Market Development and Capacity Building
The IBRB also acts as a developmental authority, promoting insurance literacy, encouraging
data-driven underwriting practices, and facilitating the growth of inclusive fire insurance
products. It works in collaboration with institutions like the Asian Development Bank and
OECD to implement international best practices (OECD, 2019).
Conclusion
In conclusion, the IBRB plays a pivotal role in Myanmar’s insurance governance by ensuring
that the fire insurance subsector remains legally compliant, financially stable, and
accessible. Through robust supervision, policy approval, and consumer protection, it
strengthens public confidence in fire insurance as a vital financial safety net.
References (APA Style)
Asian Development Bank. (2020). Myanmar: Insurance market liberalization roadmap.
Manila: ADB. https://www.adb.org/publications/myanmar-insurance-market-
liberalization-roadmap
Insurance Business Regulatory Board. (2019–2020). Notifications on insurance
licensing and regulation. Ministry of Planning and Finance, Myanmar.
Myanmar Centre for Responsible Business. (2021). Insurance sector overview. Yangon:
MCRB.
Organisation for Economic Co-operation and Development. (2019). Insurance markets
in Southeast Asia: Myanmar country profile. OECD Publishing.
Pyidaungsu Hluttaw. (2019). Insurance Business Law (Law No. 3/2019). Nay Pyi Taw:
Government of the Republic of the Union of Myanmar.
