Myanmar will let foreign insurers enter early next year as part of a broader push to develop its financial services sector, according to local news reports.

An industry body will also be formed.

“We’re going to speed up liberalisation, meaning we are going to allow foreign players,” the Financial Regulation Department’s U Thant Zin told the Myanmar Times.

 “We want private sector participation, meaning every stakeholder from the market.”

A number of foreign companies, mostly Japanese, have opened representative offices, but there are restrictions on their commercial activities.

The concept of insurance coverage remains largely alien in the country, which returned to civilian rule only last year after decades of military dictatorship.

International law firm Kennedys says a number of areas including ownership rules and capitalisation requirements must be reviewed as Myanmar develops its insurance sector.

“The criteria under which foreign insurers will be allowed to enter the market and the regulatory framework for foreign participation have not been set,” it said.

“Will 100% foreign-owned insurers be permitted, or will joint ventures with local partners be required? We understand the Government is currently working on new insurance regulations and also a liberalisation roadmap, which should provide answers when announced.”