MGA Asia Insurance Broker is one of the newest companies to delve into the rapidly growing insurance industry in Cambodia. As a subsidiary of MGA Australia, which was recognized as Australia’s third best brokerage firm in 2014, MGA Asia was launched to meet the Kingdom’s expanding commercial needs. The company’s executive chairman, Meas Sophat, sat down to discuss what the new firm has to offer.
MGA Asia is MGA Australia’s first firm to be established overseas. Why did the company choose Cambodia over other countries in the region?
The company’s chairman, [John R George], had been keen on setting up a business in Cambodia for quite some time. Cambodia was the best location to start a new venture because our local business partners have a lot of experience in industry development.
What legacy does MGA Asia derive from the success of MGA Australia?
It is primarily branding. MGA Australia has been in the brokerage business for over 40 years. It has over 30 offices and 300 personal across Australia. MGA Asia is using the same business model that lead to their success. As well as the management structure, which is internationally recognized, we use a system that is new and unique to Cambodia. We have an online portal that automatically generates all the documents, quotations, invoices, policies and receipts for our clients.
What does a brokerage firm do exactly and why is it important for Cambodians and businesses to use your service?
Simply put, we are like a real estate agent for insurance. We do not represent the insurance company; we represent our clients by negotiating the premium, handling insurance inquires and claim management. Our risk management team looks at our client’s portfolio and evaluates the liabilities and assets in order to provide comprehensive protection. It is important that companies go through a broker because we are their advisor, allowing them to make educated decisions about their financial security.
Why are your services required in today’s industry?
Without a broker, the client has to negotiate directly with the insurance company. That can be a confusing process and involves a lot of work. Before our clients make a decision, we present them with options. We have professionally done all the work and this makes the process transparent and understandable.
How do brokers benefit the insurance companies?
Insurance companies can reduce their sales staff and focus on distribution. This allows them to increase their bottom line. Insurance companies are very happy to work with brokers because we are truly the backbone of their sales. For instance, we operate primarily in Phnom Penh at the moment, but as business expands we will send our staff out to the provinces.
What is the forecast for the insurance industry in Cambodia?
Well, it will certainly grow. If you look at all the construction and building happening across the country, the banking industry is established and provides all the capital for those projects. We are here to protect those projects.