Swiss-based life insurance firm to exit Myanmar

The wholly foreign-owned insurance company Chubb Insurance has reportedly decided to relinquish its business licence to Myanmar’s military regime, closing its branch offices and ceasing operations in the country. Chubb was one of five foreign life insurance companies granted approval to operate in Myanmar in April 2019, during the administration of the civilian-led National League for Democracy party. Spokespersons for the company now say it is unable to sustain operations in the country. Chubb submitted a request to shut down earlier this year to the Insurance Business Regulatory Board (IBRB), an agency working within the military-controlled Ministry of Finance and Revenue, according to two employees who spoke to Myanmar Now. All active insurance policies will be rendered invalid from December 15, with any premiums paid in advance by customers to be refunded by early next year, one of the women working at the company said. “After all accounts are cleared, customers will receive full reimbursement of the amounts they are owed,” she said. “We all worked together in a happy, active, and harmonious way. I think this decision comes from the company’s top management. For us, it has been an enjoyable experience,” she added. Myanmar Now sent queries to Chubb’s headquarters and Myanmar branch office regarding the company’s withdrawal from the country but has yet to receive a response. Chubb Insurance, which has offices active in more than 50 countries, is the first foreign insurance provider to withdraw from the country since the military seized power in 2021. Other foreign-owned insurers such as the Hong Kong-based AIA; Prudential, based in the United States; Manulife, based in Canada; and Dai-ichi Life, based in Japan, are still operating in Myanmar. Documents leaked from the IBRB, dated December 17, confirmed Chubb’s request to withdraw. The request cited operational difficulties amid the prevailing economic and political conditions in Myanmar. The Myanmar military junta has perpetrated conflict with anti-junta resistance and ethnic armed groups throughout the country since the February 2021 coup, creating the need for increased military spending. The regime has sold bonds and treasury bills and relies on loans from domestic creditors to cover the expenditures. Myanmar Now has previouslyreported that both international insurance companies and domestic private banks have bought junta-issued bonds and bills totalling billions of kyat (hundreds of thousands of dollars in value), with domestic financial institutions making the bulk of the purchases.

Swiss-based life insurance firm to exit Myanmar

The company informed the country’s military regime that it could no longer operate under the current economic and political conditions that have developed there

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