Bhutan opens market to new insurer

The Himalayan kingdom of Bhutan has granted a licence to a private company to enter the local insurance market for the first time. Bhutan Insurance Ltd will compete with the state-run Royal Insurance Company of Bhutan (RICB) in the areas of personal, commercial, industrial and liability insurance. But the government in Bhutan, which borders India and China, has stopped short of opening the market for life insurance. The new company is raising 60% of the start-up capital through a public issue of shares. The company’s two founders, chairman Ugyen Rinzin and chief executive Tshering Gyaltshen (a former RICB employee), have provided the balance of 40%. “Even by conservative standards, there is a good market for another insurance company in Bhutan,” said Mr Gyaltshen.