PHNOM PENH, May 18 (Xinhua) -- Cambodia expects to launch the micro-insurance scheme sometimes this year in order to boost the development of the country’s nascent insurance industry, said a government official on Wednesday.
Micro-insurance – the provision of low-cost insurance to large low-income populations - has gained popularity in countries such as India and the Philippines but has so far been limited in Cambodia to pilot projects carried out by non-profit organizations.
In Meatra, the head of the Finance Ministry’s insurance division, said that the division has finalized a draft sub-decree for the micro-insurance scheme and it will be putting for public consultation later this month in order to get feedback before it is submitted to the government for endorsement.
“We hope that the scheme will be officially launched in August or later this year,” he said. “Micro-insurance is very vital to boost the insurance industry development and it will be useful for low-income people.”
The types of micro-insurance that will be sold to rural clients are mainly credit life, health and agriculture based insurance products and livestock, he added.
According to the sub-decree, the company or individual wants to operate as a micro-insurance firm; it’s required to have the minimum capital of 200,000 U.S. dollars.
Currently, Cambodia has six insurance companies and one reinsurance company supporting the market. The industry’s premium revenues were 24.9 million U.S. dollars last year.
All of the insurers are in Phnom Penh, so when the micro-insurance scheme comes online, it’s expected that they will expand their operational networks to rural areas or partner with microfinance institutions to provide the services to the rural dwellers. (Nguon Sovan)
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