Some insurers in Myanmar have temporarily stopped selling new disaster insurance policies. This is a consequence of the powerful earthquake that hit the country on 28 March this year.
Media reports say that the insurers are currently only renewing the policies that have come up for renewal. A few insurance agents said there are many such insurers who are not selling any fresh covers and they also give no time schedule as to when the sale of new covers could resume.
Insurance companies have stated that they have suspended new purchases of natural disaster insurance but have allowed existing natural disaster insurance policies to be renewed and extended. The companies have also said that the suspension is temporary, though they could not specify when sales might resume.
Disaster insurance cover in Myanmar usually covers homes, vehicles and other property. Post-quake many insurance customers have been asking for earthquake and disaster covers, which were very sparingly bought till the mega-quake happened.
According to an insurance industry source the temporary suspension of new policies is due to the current uncertainty and the potential risk of fraudulent claims. Sales are paused now, but they will resume. Demand is expected to rise.
Media reports have quoted Myanmar Insurance Association officials saying that there were no instructions to suspend the sale of natural disaster insurance, and that given this current period is a crisis period following the earthquake, companies should sell more earthquake insurance in particular.
“At a time like this, they should be selling more and providing more protection. At a meeting recently they had said they would continue selling. We are not sure how each company handles its risk policy. We don’t have the authority to order them.”