Muang Thai Life makes forays into Cambodia, Vietnam

Muang Thai Life makes forays into Cambodia, Vietnam

Muang Thai Life Assurance (MTL) plans to start offering its life insurance products in Cambodia, its first operation outside Thailand, beginning next year.

The company's operation in Cambodia will be a joint venture, Sovannaphum Life Assurance Plc, with traditional products focused on protection and endowment policies.

The Cambodian authority is expected to grant a life insurance operating licence to Sovannaphum early next year, with the company selling via multi-distribution channels including agency, bancassurance and digital, said president and chief executive Sara Lamsam. 

With the country's population of 15 million and an insurance penetration rate below 1% of GDP, the company has high growth potential, he said. 

MTL and Cambodia-based Canadia Investment Holding set up Sovannaphum with total registered capital of US$7 million. The Thai life insurer holds a 49% stake in the joint venture and Canadia owns the remainder.

MTL, Thailand's second-largest insurer by total premiums, together with Belgium-based Ageas has entered into a memorandum of understanding with Vietnam's Military Commercial Joint Stock Bank (Military Bank) to set up the joint venture firm MB Ageas Life to run an insurance business in Vietnam. Under the 15-year contract, MB Ageas Life will offer life insurance products via the bancassurance channel of Military Bank.

"Insurance business in both Cambodia and Vietnam has high opportunities to grow. They will take shorter period to develop than the Thai market, which has had insurance for 80-90 years," said Mr Sara.

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