AsiaLIFE

AsiaLIFE: What experience did you have in the sector before you came to Cambodia?
David Treal: I started working in the field of insurance six years ago in Bangkok. I worked for three years in the main branch of AG Service providing expats and Thais with insurance solutions adapted to their specific needs. During this time I learned how important it is to get a broker to deal with your insurance issues. Policies are often very complex. With so many offers on the market it’s a must to get counselling from a broker to help you pick the right coverage and deal with your claims when they occur.

Why did you decide to come to Cambodia?
I first came on holiday. I noticed there were no insurance agents or brokers to answer the demand of a well-established expatriate community. I thought there was a window to start my own business here. In 2006, I started AGS Cambodia.

How do you compare doing business in Cambodia with the other countries you have worked in?
Cambodia is one of the few countries in Southeast Asia where you can have 100 percent foreign ownership. Work permits and visas are easier to obtain compared to neighbouring countries. Compared to other countries where many sectors are already well established, Cambodia has a lot to offer in terms of sectorial development. The process to open a commercial company with the Ministry of Commerce is relatively fast – about two weeks. The Ministry of Economy and Finance is doing a great job regulating the sector and restoring public confidence in the financial institutions.

What types of insurance does AG offer its clients?
We are a general insurance agency so we offer all types of insurance solutions from motor vehicle or fire insurance to health insurance or public liability.

Who are your typical clients, and what type of insurance is most popular?
Most of our clients are foreigners or Cambodians who have lived abroad. Foreigners are very concerned about protecting their health and investments against the risk of living and doing business in Cambodia. With almost no construction standards the risk of fire is high in the country, so foreign investors are looking for security. The risk of road accident is very high as well, considering the state of the transportation network and the lack of law enforcement. Health insurance may be the highest concern of our clients. With poor health infrastructure most conditions would require a medical evacuation to a neighbouring country and guarantees of payment must be presented to hospitals prior to getting treatment.

Over the years have you seen an increased take-up of insurance by Cambodians?
Cambodians are slowly becoming to understand the benefits of holding an insurance policy. More and more employees request to have health insurance provided by their employer and purchase motor vehicle insurance. As with the banking industry, the insurance sector is now taking its part in the development of the country. The government has made great progress in passing laws to make mandatory public liability insurance for commercial motor vehicles. In time, this will also be introduced for private vehicles, and hopefully there will be less hit-and-run accidents.

How do you see the insurance industry developing in Cambodia?
The industry should grow as the country grows. With the construction boom and double-digit growth, two new companies started business in Cambodia. Now the crisis has delayed these developments, but the insurance industry is so small in Cambodia, compared to Thailand or Vietnam, that there is definitely room for growth in the sector.

With the global downturn what are the major challenges facing the insurance industry?
In a time of crisis when you have no guarantees, people tend to look for security. Yes, less development will mean less new business to insure, but maybe some people without insurance during the boom years are now looking to protect their investment and will purchase a policy.

If you were to give some advice to someone thinking of taking out an insurance policy what would it be?
Come to see me!


CV: David Treal
Age: 36
Company: AGS Cambodia
Position: General Manager/ Owner
Nationality: French
Marital Status: Single
First came to Cambodia in: 2004