Logo of Phnom Penh Post newspaper Phnom Penh Post - Insurance revenues to rise 20% for the year




Insurance revenues to rise 20% for the year

Insurance revenues to rise 20% for the year

Premium revenues across Cambodia’s insurance industry are expected to increase 20 per cent year-on-year in 2011, Mey Vann, director of the Department of Industry and Finance at the Ministry of Economy and Finance, predicted yesterday.

The Kingdom’s six insurance firms are set to accrue a total of US$30 million in premium revenue throughout 2011, up from last year’s figure of $25 million, he said at the launch of a reinsurance supervision seminar yesterday.

“In 2011, Cambodia’s health insurance industry has increased because of the Kingdom’s positive economic growth and the growing number of people beginning to understand the benefits insurance offers,” Mey Vann said.

He said that he expects to see consistent 20 per cent year-on-year growth for the foreseeable future, as the industry continues to expand from its low base.

“The goal of the insurance industry is to reduce risk and protect all business and economic activity through transferring risk to insurers and re-insurers by paying regular premiums,” he said.

Mey Vann added that the premium revenue collected from the insurance industry can be used to develop the financial sector – creating additional jobs and boosting the economy.

A number of industry experts also agreed that the insurance sector has grown steadily throughout 2011.

Infinity Insurance CEO David W Carter yesterday told the Post that the rise in revenue was a result of growth in a number of specific markets.

“Infinity’s premium revenue increase came mainly from a growth in real estate, healthcare and motor insurance,” he said, adding that the company had predicted revenue growth of about 15 to 20 per cent in 2011.

However, Forte Insurance general manager Youk Chamreounrith said yesterday that the firm’s premium revenues had already soared 29 per cent year-on-year.

“Many Cambodians have now started to understand how insurance works, and the benefits of having it.”

He said that the firm’s revenues derived primarily from construction, factory fire and motor insurance.    

Despite the strong year so far, Youk Chamreounrith said he expected Forte Insurance’s premium revenues for 2011 to level off at 25 per cent growth year-on-year.

The six insurance companies currently operating in the Kingdom are Infinity, Forte, CAMINCO, Asia Insurance, Campubank Lonpac and Cambodia-Vietnam Insurance.

MOST VIEWED

  • Thousands attend CNRP-organised pro-democracy vigil in South Korea

    Thousands of supporters of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP) on Saturday gathered in the South Korean city of Gwangju to hold a candlelight demonstration calling for the “liberation” of democracy in Cambodia. Yim Sinorn, a CNRP member in South Korea, said on

  • US Embassy: Chinese trade does not help like the West’s

    The US Embassy in Phnom Penh on Friday said relations between China and Cambodia did not create jobs or help industry when compared to the trade between the Kingdom and the US. “About 87 per cent of trade [with China] are Chinese imports, which do not

  • Cambodia-Thailand rail reconnected after 45 years

    A railway reconnecting Cambodia and Thailand was officially inaugurated on Monday following a 45-year hiatus, with the two kingdoms’ prime ministers in attendance at the ceremony. On the occasion, Cambodian Prime Minister Hun Sen and Thai Prime Minister Prayut Chan-o-cha travelled together from Thailand’s

  • Vietnamese land-grabbers held

    Following a provincial court order, Ratanakkiri Military Police on April 16 arrested 12 Vietnamese nationals accused of crossing the border into Cambodia and illegally clearing forest land. The accused are now being detained at Phnom Svay prison in the province. Ratanakkiri military police commander Thav Yen told