CAMBODIA’S insurance premium revenues rose 13 percent to US$5.34 million for this year’s first quarter, compared to the same period of last year, according to the General Insurance Association of Cambodia (GIAC).

GIAC Chairman Chhay Rattanak said the premium income was driven by coverage for vehicles, which provided 27 percent of revenues, fire (25 percent), medicine and healthcare (18 percent), and miscellaneous other areas (25 percent).

Claims paid for the first three months of the year totalled $1.4 million, “but mostly resulted from last year’s operations”, he said Wednesday.

Claims outstanding are around $2.3 million, said the chairman, who added that he does not have the figures for claims made for last year’s first quarter to compare this with.

A total of 12,017 policies were issued to customers in the first quarter.

General Manager of Campubank Lonpac Insurance, Agnes Chan Weng Yee, said the firm’s premium revenues increased by about 40 percent in Q1 due to most of the insurance policies being accepted on January 1 each year.

“The insurance industry in Cambodia still has room for further growth,” she said.

“The total insurance industry’s premium for 2009 was maintained at the $20 million mark despite a slowing down in the economy. With increased spending this year we foresee a steady growth of premium in year 2010,” she added.

Cambodian National Insurance Company (CAMINCO) also reported 40 percent growth in premium revenues for the first quarter, to $551,000.

Main premium revenue increases came from insurance for vehicles and home and insuring against garment industry fire, CAMINCO Managing Director Duong Vibol told the Post last month. He said claims had also increased on passenger bus accidents.

Cambodia has six insurance companies: Forte Insurance, CAMINCO, Asia Insurance, Campubank Lonpac, Infinity Insurance, and Cambodia-Vietnam Insurance. There is also one domestic reinsurance company.

Last year, Cambodia’s insurance premium revenue was $20.07 million – a 2.86 percent drop compared to 2008 total premium of $20.5 million.

Earlier this month, a survey released by Indochina Research Ltd predicted that the Kingdom’s insurance sector could grow by up to 28 percent in the next year.