Logo of Phnom Penh Post newspaper Phnom Penh Post - Life insurance market to take on new player

Life insurance market to take on new player

Life insurance market to take on new player

Dai-ichi Life Insurance, one of Japan’s biggest life insurers, will open its first offices in Phnom Penh at the end of the month, and plans to begin selling life insurance policies as early as April 2017, according to Japanese media reports.

The company will be the first Japanese insurer to enter Cambodia’s small but rapidly growing insurance market.

According to the Insurance Association of Cambodia (IAC), gross premium of life insurance grew to $8.9 million during the first quarter of 2016, up 123 per cent compared to the same period last year,

However, the life insurance market in Cambodia remains one of the smallest within ASEAN countries. Huy Vatharo, chairman of IAC, could not give any details on the announcement, but said the growing number of insurance providers would help develop an understanding of the product in the country.

“Life insurance is a new financial product for Cambodians and insurers must now face the challenge of raising awareness of the product’s benefits to the public,” he said.

Dai-ichi, which reported revenues of 6.76 trillion yen last fiscal year, is facing increasingly difficult investment prospects in Japan as Japanese government bond rates continue to decrease. The economic climate is pushing insurers to look to riskier Southeast Asian markets.

The company already operates in Vietnam, Thailand and Indonesia. It now enters a life insurance market occupied by four other competitors, attracted by the financial potential of the country’s growing middle class. Dai-ichi could not be reached for comment yesterday.

MOST VIEWED

  • Restrictions re-imposed in capital as Covid cases surge

    Amid the ongoing community outbreak of Covid-19, which has shown no sign of subsiding with 750 infections and 10 deaths reported on June 2 alone, the Phnom Penh Municipal Administration has decided to re-impose the suspension of all occupations and business activities deemed as posing high risk of

  • Phnom Penh-Sihanoukville expressway 51% complete

    The construction of the nearly $2 billion Phnom Penh-Sihanoukville Expressway is 51.35 per cent complete and is expected to be finished in 2023, according to Ministry of Public Works and Transport secretary of state Vasim Sorya. Invested in by Cambodian PPSHV Expressway Co Ltd, the first expressway in

  • With herd immunity likely in 2022, is Cambodia ready to reopen for tourism?

    The government aims to inoculate 80 per cent of the target population by June next year, giving it a head start among regional peers to reboot the sector but first, it has to do a few things to up its game A sign on a glass

  • First 7-Eleven store to open mid-June, ambassador says

    Thai retail conglomerate CP All Pcl will open Cambodia’s first 7-Eleven convenience store in mid-June, Cambodian ambassador to Thailand Ouk Sorphorn told The Post on June 1. The Bangkok-listed 7-Eleven franchise operator, the retail arm of Charoen Pokphand Group Co Ltd, granted CP All (Cambodia)

  • US wants 'full access' to Ream Naval Base

    On June 11, the US embassy's Defense Attaché Colonel Marcus M Ferrara visited Ream Nava Base in coordination with Cambodian officials following the recent approval of Prime minister Hun Sen to allay the concerns on Chinese military presence at the base as raised by US Deputy

  • US embassy guard gets Covid despite two doses of Pfizer jab

    The Covid-19 tracking commission on June 4 said a security guard at the US embassy in Phnom Penh had contracted the novel coronavirus, despite having received a second dose of the Pfizer-BioNTech shot two weeks ago. Embassy spokesperson Chad Roedemeier confirmed the SARS-CoV-2 infection to The