A panel discussion takes place during the ‘Current Developments of the Insurance Market in Cambodia’ forum, held in Phnom Penh on April 22. Hin Pisei
A senior insurance regulator has described the potential of the Kingdom’s insurance sector, while acknowledging that uptake remains low.
Speaking at an April 22 Information Sharing Forum, Bou Chanphirou, director-general of the Insurance Regulator of Cambodia, noted that the insurance sector has long reached its peak in developed countries.
However, he acknowledged that in developing countries like Cambodia, insurance service usage remains limited. He noted that more and more Cambodians have the financial ability to purchase insurance, but public awareness and understanding of the sector remains low.
The Phnom Penh “Current Developments of the Insurance Market in Cambodia” forum was organised by the Insurance Association of Cambodia (IAC), in collaboration with the Club of Cambodian Journalists.
Chanphirou explained that insurance plays an important role in maintaining economic and social stability, especially when individuals or families face natural disasters or accidents.
He added that in the last five years, the Cambodian insurance market has grown at an average rate of 7.1% per year.
“I hope that day by day, year by year, our people will become more aware of the insurance sector and seek out insurance services more frequently,” he said.
In 2024, insurance Gross premiums in Cambodia totalled $357 million, marking an increase of just over 3% compared to 2023, while claims payouts to customers reached nearly $91 million, according to data from the Insurance Association of Cambodia (IAC).
Huy Vatharo, IAC chairman, noted that insurance is a vital financial safety net for individuals and families to protect against risks. Currently, the IAC is working hard to educate the public about the insurance sector and build trust in insurance services.
“Purchasing insurance is like buying a financial safety net for yourself and your family,” he said.
The IAC reported that in 2024, total insurance premiums reached $357 million, representing a 3.44% increase from $345.1 million in 2023. The 2024 premiums came from, Life insurance: $200.2 million (up from $194.7 million in 2023), General insurance (covering property, health, life, fire, vehicles, engineering, transportation, and other risks) $148 million (up from $143.2 million), and Microinsurance: $8.8 million (up from $7.2 million).
The most purchased general insurance products in 2024 included property/fire insurance, health, vehicle, engineering and marine/aviation transport insurance.
Alongside the premium growth, the Cambodian insurance sector in 2024 also fulfilled its obligations by paying out claims to customers.
The total payouts were $90.9 million, an increase from the $63.3 million paid in 2023. This amount included General insurance: $56 million (up from $46.3 million), Life insurance: $32.6 million (up from $16 million), and Microinsurance: $2.1 million (up from $1 million).
According to the IAC, insurance premiums in 2012 were $36.1 million, by 2019 they had reached $252.8 million, 2020: $272.9 million, 2021: $297.6 million, 2022: $334.4 million, and 2023: $345.1 million.
According to IAC, the Cambodian insurance industry began in 1990 with only one general insurance company.
Today, the Kingdom has 40 insurance companies, including 18 general insurance companies, 14 life insurance companies, 7 microinsurance companies, and 1 reinsurance company. The total assets of these companies are approximately $1.2 billion.
