Cambodia to form first life insurer

PHNOM PENH, Aug 13, 2011 (Xinhua via COMTEX) -- The Ministry of Economy and Finance and four private companies have announced a joint venture to establish the first life insurance firm in Cambodia.

The ministry and four firms had signed an agreement to establish Cambodia Life Insurance on Thursday, Mey Vann, director of the Ministry's Financial Industry Department, told Xinhua Saturday.

The four private firms are PT Asuransi from Indonesia, Asia Insurance from China's Hong Kong, Bangkok Life Assurance and Bangkok Insurance Public from Thailand.

"Under the deal, the Ministry holds 51 percent stake and the four firms own the remaining 49 percent," he said, adding that according to Cambodia's insurance law, it's required to have the minimum capital of 7 million U.S. dollars to open an insurance firm here.

Currently, Cambodia has six insurance companies and one domestic reinsurance company, all are general insurers, and none of them is life insurer.

"The Cambodia Life Insurance will be the first-ever life insurance company in Cambodia," he said. "It will help to develop the country's financial industry and also support the development of the newly formed securities market."