Logo of Phnom Penh Post newspaper Phnom Penh Post - Life insurance to be launched

Life insurance to be launched

Life insurance to be launched

CAMBODIA has struck an agreement to create the Kingdom’s first life insurance firm, a Ministry of Economy and Finance official said yesterday.

The venture will be 51 percent held by the government, with the remainder owned by a group of four private companies, said Ros Phearun, Deputy Director of the ministry’s Finance Industry Department.

“This policy is very important for our country, as it will help to ensure financial security for Cambodians and will help to develop the financial industry,” he said.

The private companies include Indonesian insurer PT Asuransi, Hong Kong-based Asia Insurance, and Thai firms Bangkok Life Insurance and Bangkok Insurance Public, said Ros Phearun.

The deal was reached on Thursday, though no date has been set to create the insurance firm, he added.

Representatives of the four firms could not be reached for comment yesterday.

Observers welcomed the firm’s creation, commenting there was a requirement for the life insurance services it would provide.

“It’s good to see the government issue the licence. Cambodians need life insurance as much as anybody else,” ACLEDA Bank Chief Executive In Channy said yesterday. “When family members who have access to loans die, they sometimes leave the family with outstanding debts. Life insurance will help to alleviate this financial burden.”

There are currently 6 insurance companies and one re-insurance company operating in the Kingdom, according to the most recent data from the General Insurance Association of Cambodia statistics.

A total of US$13.5 million in premium revenue was collected in the first half of this year, a 19 percent year-on –year increase on the $11.43 million recorded in 2010, its statistics show.

Claims also increased during the first six months compared year-on-year, hitting $30.6 million in the period in 2011, from about $4 million in the same period 2010, the data shows. Two large manufacturing factories suffered serious damage from fire in March and April.

Last week, industry insiders said they were seeing large increases in fire insurance in Cambodia driven partly in response to the two fires, as well as proof that the Kingdom’s insurance companies were able to make good on the claims.

MOST VIEWED

  • Temi tourism project approved by the CDC

    The $500.4 million Tourism, Ecological, Marine and International (Temi) tourism project has been approved by the Council for the Development of Cambodia (CDC), according to a notice on its Facebook page on Monday. The project is part of Chinese-owned Union City Development Group Co Ltd’s (

  • Rainsy will return at ‘favourable time’

    Opposition figure Sam Rainsy on Saturday suggested he would not return to Cambodia as he had previously promised, saying that like liberators King Father Norodom Sihanouk and Charles de Gaulle, he would only do so at a “favourable time”. “I will go back to Cambodia

  • US Embassy urged to stop ‘disrespecting sovereignty’

    The Ministry of Foreign Affairs and International Cooperation called on the US Embassy in Phnom Penh on Saturday to respect the Vienna Convention on Diplomatic Relations after it called former opposition leader Kem Sokha “an innocent man” – a move deemed to be “disrespecting Cambodia’s

  • NagaWorld casino sees net profit of more than $390M last year

    Phnom Penh’s NagaWorld casino posted a 53 per cent net profit increase last year at $390.6 million, a sum which is almost equal to the combined net profit of all Cambodian commercial banks in 2017. NagaWorld’s parent company, NagaCorp Ltd, is listed on the Hong Kong