Logo of Phnom Penh Post newspaper Phnom Penh Post - First micro-insurer launches in Kingdom

First micro-insurer launches in Kingdom

First micro-insurer launches in Kingdom

PREVOIR Kampuchea Micro-life Insurance Plc has launched as the first service of its kind in Cambodia, targeting the country’s lower-income demographic, according to government and company officials.

The Ministry of Economy and Finance issued a licence to PKMI, a subsidiary of French insurer Groupe PREVOIR, in October, and the company opened a Phnom Penh office in October, according to PKMI representative Chou Ngeth.

“We see that Cambodia has quite a lot of potential,” he said, given that micro-insurance is an as yet untapped market.

Groupe PREVOIR, an independent insurance group that specialises in life insurance, was first established since 1910, according to Chou Ngeth.

The company operates five branches outside of France, including Portugal, Poland, Vietnam, Brazil and now Cambodia, he said.

PKMI has already partnered with a Cambodian MFI and is currently in negotiations with other players in the industry, as well as NGOs and banks, Chou Ngeth said. He declined to name of the MFI partner.

In Meatra, who is in charge of the Ministry of Economy and Finance’s insurance division, said PKMI would play an important role in the development of the industry, especially in terms of educating the rural population about insurance.

“The company has a lot of experience with micro-life insurance, so we’re giving them a chance to develop it for low- and medium-income earners who cannot afford high-paid insurance,” he said, confirming also that PKMI was in fact the country’s first micro-insurance firm.

“It’s a long-term investment. If people buy it, it can be another source of financing for the family in the future,” he added. Micro-insurance is presently available in other ASEAN countries such as the Philippines, Indonesia, Thailand and Vietnam, according to In Meatra.

General Insurance Association of Cambodia yesterday said it supported PKMI’s domestic launch, as it would bring insurance to areas of Cambodia were bigger companies had not reached.

“It will help raise awareness about insurance and its benefits among grassroots people. And it will promote the industry as a whole nationwide,” GIAC chairman Chhay Rattanak said.

He added that the micro-insurers would not compete with the Kingdom’s larger insurance firms.

MOST VIEWED

  • All Covid restrictions for inbound travellers lifted

    Cambodia has apparently taken the final step towards full reopening of the country without Covid-19 restrictions by removing all requirements for inbound travellers, who until now had to show health certificates indicating that they have tested Covid-19 negative in the past 72 hours as well as

  • Typhoon Noru brings flash floods – 16 dead

    An official warned that that the 16th typhoon of the season, Noru, had brought heavy rains to areas the Mekong River and flooded thousands of homes in the provinces bordering Thailand. As of September 27, the death toll from the flooding had risen to 16. National Committee

  • Cambodia stands firm on 5PC: No invite for Myanmar to ASEAN Summit this year

    Cambodia has not invited Senior General Min Aung Hlaing, chairman of Myanmar’s ruling State Administration Council (SAC), to the 40th and 41st ASEAN Summit and related meetings scheduled for next month in Phnom Penh. The government will instead invite a non-political representative from Myanmar

  • Mushrooming borey projects and home financing – a cause for concern?

    A spurt in housing developments is typically a sign of a growing economy but underneath all that might lay some anxiety of credit growth as developers offer financing to buyers at higher rates, an activity the central bank identifies as ‘shadow banking’ Earlier this year,

  • Thai Senate delegates in Cambodia to discuss anti-graft co-op

    A delegation from Thailand's Senate was in Phnom Penh on September 28 to meet their Cambodian counterparts to discuss strategies for fighting corruption and enhancing cooperation. The Thai delegates were from its Senate’s Committee on Studying and Inspecting Corruption, Misconduct and Strengthening Good Governance. They

  • Scholarship winner tells secrets to success

    Chhim Chaknineath was awarded the Chevening Scholarship for one year of postgraduate study in the UK for the academic year 2022-2023 along with a group of 10 other outstanding students who applied. She spent more than a year researching and studying – as well as consulting with