Posted Date: Monday, 21-May-2012
PHNOM PENH, May 21 (Xinhua) -- Cambodia launched the first ever life insurance here with the official inauguration of Cambodian Life Insurance Company (Cambodian Life) on Monday, seen as another landmark in the kingdom's financial market after the opening of stock market in mid-April.
Cambodian Life is a joint venture established on January 10th, 2012 by Cambodia's Ministry of Economy and Finance and four other partners, namely PT Asuransi from Indonesia, Asia Insurance from Hong Kong, Bangkok Life Assurance and Bangkok Insurance Public from Thailand.
The Ministry holds 51 percent of stake in the joint venture.
Operating throughout the whole country, Cambodian Life is tasked to provide life insurance products in the form of private voluntary for Cambodian people's safety nets, which is a new mechanism going to supplement the country's social security system under the Labor Law.
As a newly-born enterprise, only three types of insurances are found on the company's product list, so far, namely mortgage insurance, whole life insurance and term insurance.
According to the company's product introduction, the Mortgage Insurance has a coverage period of 2- 20 years on the insured person's outstanding loan with a minimum amount of 1,500 US dollars; the Whole Life covers the insured up to 90 year old under the condition of natural death, accident death and death of disease; while the Term Insurance provides life coverage for a limited period of 3, 5 or 10 years under the condition of natural death, accident death and death of disease.
Addressing the launching ceremony, Aun Pornmoniroth, the minister attached to the Prime Minister and the secretary of state of the Ministry of Economy and Finance, hailed the Cambodian Life' s inauguration as another historical achievement after the launch of stock market in mid-April. "The establishment of life insurance in Cambodia is a creation of diversity in financial services in the forms of saving schemes, investment, family financial planning for long-term to manage unforeseen risks," he said.
Also, he highlighted, life insurance is also significant in terms of liking other financial sectors, including securities market, banking sectors, as its premium will be invested in long- term investment in securities market and commercial banks.
Cambodian Life's staff told Xinhua that, in the future, more insurance products will be designed to diversify the country's insurance market, including health insurance and accident injury coverage.
Currently, Cambodia has six insurance companies and one domestic reinsurance company, all are general insurers, and none of them is life insurer.