Cyclone Nargis Losses Will Not Affect Insurance Premiums

An article in Business Insurance predicts that most of the damage suffered by Myanmar when Cyclone Nargis slammed into the country over the weekend is not insured by any international insurers. Thus, the losses will be borne in Myanmar itself and will not affect the international market.

Myanmar nationalized its insurance industries in 1963. All business insurance in Myanmar is written through Myanma Insurance. All foreign investors must purchase insurance through the company. The Myanmar Finance and Revenue Ministry claims on its website that the company possesses $36 million in reserves and has reinsurance.