BLA penetrates Cambodia

Bangkok Life Assurance (BLA) plans to branch into Cambodia’s insurance market next year after gaining a licence from the country’s authority.

The company is recruiting sales agents for Cambodia, said acting president Komkai Thusaranon.

BLA may need to employ thousands of sales agents there, based on labour levels at rival companies, she said.

Thai insurance firms are parading into Cambodia, Laos, Myanmar and Vietnam (CLMV), which are considered among the few global bright spots.

There is a growing middle class in these markets keen on buying life insurance and low insurance penetration rates.

Insurers including Muang Thai Life Assurance, Muang Thai Insurance and Viriyah Insurance have expanded into CLMV markets.

Mrs Komkai said the company plans to dip its toe into Cambodia with whole-life and savings insurance policies, adding more policies if the foray proves a success.

“We expect to reach the break-even point for investment in Cambodia next year. The company plans to explore more business opportunities in other CLMV markets,” she said.

BLA informed the Stock Exchange of Thailand in August its joint venture BLA (Cambodia) was granted a licence to operate in Cambodia.

BLA holds a 52% stake in BLA (Cambodia) with registered capital of US$7 million.

BLA, ranked sixth in life insurance premiums for Thailand, cut its first-year premium growth this year to 15-16 billion baht from 22 billion because of the low-interestrate environment.

Mrs Komkai said BLA adjusted its strategy to maintain growth this year by focusing on longer-term policies, particularly protection and annuity products.

The longer-term insurance should be less affected by low interest rates, said Mrs Komkai.