The Council of Ministers last week approved a raft of changes to the country’s insurance laws, a move that industry insiders hope will better reflect the sector’s current state.
The draft law, which was prepared by the Ministry of Economy and Finance, has an additional 14 chapters and 114 articles aimed at regulating general, life and micro-insurance products.
Youk Chamroeunrith, general manager of Forte Insurance, said the reforms were overdue and that the original insurance laws, which were drafted more than a decade ago, were no longer reflective of the industry.
“It’s time to revise our laws to answer the market’s change,” he said. “It will help to increase consumer confidence.”
Cambodia’s insurance industry began in 1990 with one general insurance provider, state-backed Cambodian National Insurance Company. Today, there are 11 insurers offering insurance products, which are limited by coverage ceilings of $5,000 and are targeted at those in rural areas.
In Meatra, director-general of Cambodian Life, said the revised law would assist in regulating the industry’s growth.
“The collaboration between regulators, operators and consumers is needed to make the industry grow smoothly,” Meatra said.