In a joint venture, the National Reinsurance Company and the Asia Insurance Group of Companies have put up a $7 million capital investment to launch the reinsurance company “Cambodia Re.”
The Asia Insurance group consists of the Thai-owned Bangkok Insurance, which is partnered with insurance companies from Singapore, Hong Kong and Indonesia, investors said.
The Asia Insurance Group is a 20 percent shareholder in the venture, while the remainder is held by the state-owned Cambodian National Reinsurance Company, said Hang Chuon Naron, chairman of the board of directors of Cambodia Re.
The joint venture was signed Sept 16 and Cambodia Re began operations on Tuesday with 14 employees.
Caminco, Forte and Asia insurance companies will all pay Cambodia Re 20 percent of the value of insurance policies issued to consumers. That money will be returned to the three insurance companies when consumers collect on those policies.
Cambodia Re will reinsure property, health and auto insurance policies, Hang Chuon Naron said. The insurance industry in Cambodia, however, typically does not insure against earthquakes, war, flood or natural disasters.
Vong Sandab, general director of Caminco, said that in the past Caminco had sold insurance to local clients and then reinsured with companies abroad. Now, he said, instead of sending the money to overseas reinsurance companies Caminco will reinsure locally, which will help improve the domestic economy.
Investors are confident in the insurance industry in Cambodia because the economy is showing growth, more local consumers are realizing the importance of insurance and insurance laws are satisfactory, Vong Sandab said.
The Nation, a Thai daily newspaper, reported Wednesday that Bangkok Insurance President Chai Sophonpanich is optimistic about the insurance industry in Cambodia.
“We foresee that reinsurance will become a profitable business in Cambodia, as the country has become attractive in terms of investment for investment for industrial plants and tourism,” Chai told The Nation.