Laos to create insurance association
Laos to create insurance association
The Lao Insurance Association will be established by the end of this year, with the goal of ensuring businesses operate legally and can integrate at the regional and international levels.
A committee led by the Ministry of Finance is drafting the rules of the association and preparing documents for submission to the government and sectors responsible, according to the Head of the National Bureau of Insurance of the Lao PDR, Mr Holady Volarath.
To integrate with the region and internationally, Laos needed to create an association for the purposes of information exchange and technical assistance, he said.
The association would also regulate the insurance industry and apply common regulations.
It would enable all insurance companies operating in the country to join forces and provide assistance to each other.
Because Laos does not yet have an insurance association, delegates who attend Asean Insurance Council meetings cannot make comments or put forward proposals, he added.
“However, under the supervision of the Ministry of Finance, we will try to establish the association by the end of this year,” Mr Holady said.
After the Party and government gave the green light for foreign investment in insurance, the sector expanded and there are now 18 registered insurance companies, of which 11 are operational while seven are preparing to operate.
The government stands ready to provide the necessary policy and other forms of cooperation for investment promotion in the insurance sector, Mr Holady said.
With increasing numbers of players in the industry, every company must improve their products and services in the interests of competition, he added.
Assurances Générales du Laos is the largest insurer in Laos and is in the process of improving its products and technology in order to provide the best service to its customers, Mr Holady said.
The company is also expanding the number of adjusters, who intervene on site at accidents both in Vientiane and upcountry. It is also looking to expand services in the region and provide facilities for domestic and foreign customers by cooperating with insurance companies in neighbouring countries.
