Lao’s Phongsavanh Group (PSVG) has signed a partnership agreement to appoint Singapore’s Mekong Group and Deloitte & Touche Business Advisory to set up the first life and non-life insurance company in the Indochinese country. The company is to be called Phongsavanh Insurance Company (APA).
Under the agreement, which was signed last week, Deloitte will conduct a feasibility study to determine the current needs of the local community before setting up the required insurance framework, systems and distribution network to serve both the local population as well as companies doing business in Laos.
This is a historic event for the country as it is the first insurance company that is being set up in Laos that will offer both life and non-life insurance products, said Deloitte in a statement.
PSVG is a leading group of companies in Laos with successful pioneering enterprises in banking, oil distribution, airline, logistics, trading, food & beverage, timber and telecommunications.
Mekong Group is a Singapore-based company with a focus on Laos. It plays an advisory role and manage strategic partnerships for Laotian companies and state-owned enterprises.
Deloitte was appointed following a competitive bidding process with two other experienced consultants.
Mr Raj Juta, Deloitte Southeast Asia Insurance Leader, said: “In a country of nearly 7 million people, the potential for growth in the insurance industry for Lao PDR is huge.”
Republish from Asia Insurance Review eDaily 14 March 2016