Amidst escalating foreign and local business activity in the country, the State of
Cambodia (SOC) has launched its own insurance company.
Signing the Convention of Technical Assistance to Cambodian National Insurance Company
(CAMINCO) on Jan. 13 were Chheang Vun, SOC's vice-minister of finance, and Alain
E. Rimbert, general director of the Groupement European d'Assur-ance Maritimes et
Terrestres (GEAMT) of France.
"The first step is to strengthen our position on the market," said Chheang
Vun. "With strong support of the world-famous insurance company [GEAMT], clients
will be financially confident of CAMINCO's re-insurer. This is the fulfillment of
the hundred percent re-insurance program."
Operating under the control of the Ministry of Finance, the company received an initial
capital investment of U.S. $2 million from the SOC's Council of Ministers. Year-long
negotiations between CAMINCO and interested foreign companies were deadlocked because
of the latter's demand for a monopoly which the vice-minister described as an "unacceptable
condition" for Cambodia. In early September 1992, the Council of Ministers issued
an ordinance authorizing it to start operation in collaboration with GEAMT.
"This is a unique private company that belongs to the State of Cambodia. We
will help it to obtain international standards," said Rimbert.
As defined within the scope of the convention GEAMT is to give advice, training and
managerial assistance during the start-up period. An interest-free loan package of
U.S. $200,000 which Un Taing Um, CAMINCO's general director, said "does not
have limit of time for repayment" was also promised by GEAMT. According to Im,
repaying capacity will be 85 percent of the monthly income arising from the rent
of half of the building to a foreign company. "All money will be returned within
three years. Meanwhile, GEAMT will receive 40 percent of re-insurance commissions
and 12 percent of the premiums of the local insurance," said Un.
In line with the strategy to provide clients with the highest level of financial
security, the company is going to introduce a wide range of policies-car, motorbike,
cargo, fire and allied perils, construction, ship, aircraft, and special risks insurances.
According to Un, CAMINCO's building costs are approximately U.S. $600,000 Aside from
the registered capital, a U.S. $196,000 government grant is planned for equipment
and refurbishment. The building is currently located on the corner of Streets 106
and 13 in front of the Phnom Penh Municipal Bank. Its grand opening is scheduled
for the end of February this year.