Bangkok Life Assurance aiding Cambodia with life insurance

[BANGKOK POST]

Bangkok Life Assurance (BLA) is forming a joint venture with the Cambodian government to set up the first life insurance firm in Cambodia.

President Chone Sophonpanich said BLA recently agreed to acquire a 10% stake in the newly established Cambodia Life Insurance, which is expected to start operations early next year.

Cambodia Life has US$7 million (209 million baht) in registered capital, with the Cambodian government holding 51%, PT Asuransi Central Asia 19%, Asia Insurance Hong Kong 10% and Bangkok Insurance 10%. Mr Chone said the investment was part of the company's long-term strategic investment in the business in Cambodia, which offers expansion opportunities in the future.

"We foresee development opportunities in neighbouring countries, especially in anticipation of regional economic integration in 2015," he said.

However, Mr Chone admitted the life insurance industry in Cambodia needs time to develop, as the majority of its population are low-income earners.

"The greatest challenge is how to make Cambodians understand the true benefits of life insurance as products initially are likely to focus on life protection."

Cambodia has six or seven non-life insurance companies.

BLA for the first six months of this year posted a 118% rise in net profit to 2.27 billion baht. It has a growth target of 20% this year, with first-year premiums set to expand by 19% driven largely by bancassurance, which is expected to grow by 24%.

Last year, BLA reported total premiums of 26.49 billion baht, a rise of 32.2% from a year earlier, with first-year premiums increasing 32% to 9.22 billion baht.