Cambodia’s insurance business is continuing to make strides, with the total value of engineering insurance reaching approximately $4 million in 2013, a significant increase compared to 2012.
According to data recently released by the Insurance Association of Cambodia, the value of engineering insurance purchased in 2013 increased 24 per cent compared to 2012, which saw investment of around $3 million.
Ty Atith, assistant director of the association, said that engineering insurance is mostly taken out on large-scale construction sites, residential property developments, bridge and road construction, while insurance on purchases and installation of major machinery was increasing.
According to Atith, the increase in the value of insurance is due to economic growth and growth in the construction sector in particular, as some projects require employers to take out insurance for employees against accidents in the workplace.
But he also admitted that this was not the case across the board.
“Growth in the construction sector doesn’t necessarily always lead to increased investment in insurance, because not all investors and owners of construction project care about buying insurance for their employees,” he said.
He added, however, that he was still hopeful that investment in insurance would continue to increase this year.
Meanwhile, just as spending on engineering insurance continued to rise, spending on property insurance also increased in 2013, according to the Insurance Association of Cambodia report.
Youk Chamroeunrith, general manager of Forte Insurance, said that spending on property insurance saw a steep increase in 2013 compared to 2012 due to foreign direct investment and local investment growth, and increased awareness of the advantages of insurance by investors and citizens.
According to Chamroeunrith, his company saw 45 per cent growth in housing insurance in 2013 compared to 2012.
“I believe that investment in housing insurance will continue to increase in 2014 because investors are spending millions of dollars investing in Cambodia, and they have to buy insurance to protect against accidents, and we are also seeing many borey housing developments springing up supported by housing loans, so investments on housing insurance will increase accordingly,” Chamroeunrith said.
He added that in 2012 the value of the property insurance market increased 30 per cent compared to 2011.