MOU – Capital Taiyo Life Insurance and Myanmar Citizens Bank
Capital Taiyo Life Insurance (CTLI) Limited and Myanmar Citizens Bank (MCB) announced the execution of a Memorandum of Understanding for future Bancassurance business. The purpose of the MOU is to enter into a future business partnership for the promotion, marketing, distribution and sales of CTLI’s life insurance products to customers, with MCB acting as an insurance intermediary. MCB and CTLI will work together to implement a successful bancassurance model through a corporate agent agreement.
Myanmar’s insurance market was opened to the private sector in 2013 and has grown significantly since then and after the market was opened up to foreign insurance companies in 2019. Bancassurance is a business model in which banks and insurance companies work together to sell a wide variety of insurance products through the bank. Bancassurance is expected to grow significantly as a predominant sales channel in the future in Myanmar following the Directive issued in March 2020 by the Insurance Business Regulatory Board (IBRB), which allowed banks and microfinance institutions to operate as agents selling insurance products subject to the approval of the Central Bank of Myanmar and IBRB.
Mr. Yan Paing, CEO of CTLI, commented, “it’s a great honor and pleasure for us to be able to sign an MOU with brightest partner, MCB. We are confident that starting a new business leveraging our strength will bring both of us new value and we look forward to the future development. At the core of this partnership is a goal to increase customer satisfaction of MCB’s customers by providing our products and services meeting customer needs for insurance products. Through this new cooperation in business, we hope to significantly increase our market presence in Myanmar”.
Mr. Godfrey Swain, CEO of MCB commented, “the MOU signed with CTLI will kick off a nine-month pilot project wherein MCB will conduct sales of Life Insurance. The Directive allows banks to enter into partnership agreements with two life insurance companies per bank, and MCB selected CTLI as one of its partners. Sales will be conducted through selected branches before the Bank launches an RFP seeking to enter into a long-term partnership agreement with a selected Life Insurance organisation in the third quarter of 2021.” “This major new initiative is intended to form part of a future wealth management service proposition to MCB customers and another building block within the MCB 4.0 transformation project aiming to revolutionise the Bank and its market position in Myanmar by 2023 concluded Mr. Swain”.
About MCB Bank
Established in 1992, Myanmar Citizens Bank (MCB) is one of the first private commercial banks in the country, the first bank to be listed on the Yangon Stock Exchange and enjoys one of the fastest growth rates in the Myanmar banking sector. MCB, a Bank with a traditional focus on Commercial and SME segments, is rapidly expanding its Corporate and Retail banking arms developing new innovative and competitive products and services distributed through a network of nearly 50 branches covering 26 cities in Myanmar. In 2019 MCB signed a wide-ranging, long term consultancy and partnership agreement with the International Financial Corporation (IFC), an arm of the World Bank, embarking on a three-year transformational journey to modernize and build a best in class, universal banking model meeting and exceeding international banking standards, efficiency and customer service levels.
For more information, please visit: https://www.mcb.com.mm
CTLI’s predecessor, Capital Life Insurance, was one of the first private life insurance companies in Myanmar founded in 2013. A new Joint Venture (JV) between Capital Life Insurance and Taiyo Life Insurance Company was approved in November 2019 and subsequently re-launched as Capital Taiyo Life Insurance (CTLI).As of the end of June 2020, CTLI already has a network of 13 branches in Myanmar servicing a fast growing customer base. CTLI has significant strength in both the corporate market and the individual retail market and operates in both sectors.
CTLI is focusing on building a solid customer base through a modern sales model and places great importance on customer service with new features constantly being introduced with the latest being an online application allowing customers to check their contract details and payment history.
For more information, please visit: https://www.capitaltaiyolife.com/
About Taiyo Life Insurance Company
Established in 1893, Taiyo Life is the fourth oldest life insurance company currently existing in Japan. Taiyo Life had been listed on the Tokyo Stock Exchange from 2003 till T&D holdings was established, and became a subsidiary of T&D holdings, which is the first listed holding company of life insurance group in Japan, with its fellow subsidiary in 2004. Through its network of approximately 150 branches covering the whole of Japan, Taiyo Life provides advanced insurance products and services to customers mainly in the household market by employing approximately 8,000 licensed insurance agents. In 2011, Taiyo Life launched its first insurance product sales through bancassurance. As of 2019, Taiyo life has partnered with more than 30 banks, including Japanese megabanks, and is currently providing pension, medical insurance, long-term care insurance, etc. The total annual premium income is USD 3.1 billion, which is equivalent to the sales of more than 60,000 policies through bancassurance channel. In Myanmar, Taiyo life established its representative office in 2012. It was certified as the sole leading consultant for Myanmar’s first medical insurance project by Myanmar Insurance in July 2015, and executed the consultation for 5 years. Furthermore, in 2019, it launched a joint venture with Capital Life Insurance (currently known as Capital Taiyo Life Insurance) to make a full-scale entry into the insurance market in Myanmar.