Updates and Informations
On 29th June 2020, Myanmar Citizens Bank Limited (MCB) and Capital Taiyo Life Insurance (CTLI) executed a Memorandum of Understanding for future Bancassurance business to implement a successful bancassurance model.
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.
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 the 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 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 organization 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 revolutionize the Bank and its market position in Myanmar by 2023 concluded Mr. Swain”.