ThaiI government-owned insurance company Dhipaya Insurance has Cambodia in its sights, according to a report in the Nation.

According to the report, Dhipaya aims to expand its general insurance offering throughout the region within the next five years, starting with Laos and Cambodia, then Myanmar and Vietnam.

Managing director of Dhipaya, Somporn Suebthawilkul was quoted saying in the Nation’s June 30 report that the company is currently undertaking a feasibility study of Cambodia for the expansion.

But the Thai insurer has yet to officially apply to the Cambodian government for an insurer’s licence. Foreign insurance companies are also required to have $7 million in registered capital before entering the Cambodian market.

Mey Vann, director of the Department of Industry and Finance at the Ministry of Economy and Finance said yesterday that he had not received any proposal from Dhipaya Insurance yet.

“We welcome any company as long as they abide to Cambodia law and regulation,” he said.

Responding to questions over whether Cambodia already has too many insurance providers, Vann said once Dhipaya submits a proposal, the ministry will consider granting a licence.

“So far, there is no regulation that says Cambodia only needs ‘this’ amount of insurance companies,” he said.

“That said, the ministry will discuss whether to give out licences to the new companies,” he said.

There are currently seven general insurance providers operating in Cambodia.

General manager of Forte Insurance, Youk Chamroeunrith, one of Cambodia’s largest general insurers, also said he was unaware of the Thai government-owned insurance providers intentions.

“Their coming will add competition to the established companies by taking some part of the market share, but it is a free market,” he said.

Chamroeunrith added that Cambodia’s total insurance premium market is valued at about $40 million.