PHNOM PENH, Sept. 18 (Xinhuanet) -- Cambodia's small and young insurance industry will have a more competition with the joining of France's largest insurance company, Macif.
Macif will join Cambodia's insurance industry with an investment of 6 million US dollars in Cambodia's financially troubled Indochine Insurance, local media reported on Saturday.
"I did not think that the joining of Macif will greatly affect Cambodia's insurance market," an industry source, speaking on condition of anonymity, told Xinhua on Saturday.
Acknowledging that there will be a challenge, she said, "We have the confidence to maintain and develop our market share." "But what is more important is to improve our professional knowledge, skills and service level," she added.
Macif, has total assets of more than 15 billion dollars, will hold about 50 percent of the Indochine Insurance company and to rename it as Macif (Cambodia) to be inaugurated in February 2005.
The government has a insurance law in 2002 that requires a capital investment of 7 million US dollars for a five-year operating license and a 700,000 deposit at the National Bank of Cambodia.
Indochine was ordered to close by the government about two months ago because it did not meet that minimum requirement.
Cambodia has four insurers currently operated in insurance market, including Forte, Asia Insurance, Indochine and the state-run Cambodia National Insurance Company, or Caminco, which startedproviding insurance in 1992.
Cambodia, with a population of about 13 million, is a less developed country in Southeast Asia with a 35 percent of its population still living under the poverty line. Enditem