Logo of Phnom Penh Post newspaper Phnom Penh Post - Life insurance outstripping general a first

Life insurance outstripping general a first

Content image - Phnom Penh Post
A parade of tuk-tuks drives along Sothearos Boulevard in front of Wat Ounalom in the capital’s Phsar Kandal I commune during a promotional event for Canadian life insurance firm Manulife in 2013. Heng Chivoan

Life insurance outstripping general a first

Gross life insurance premium in the Kingdom exceeded gross general insurance premium last year for the first time following an increase in the number of operators, as well as rising consumer demand.

Though the Kingdom’s insurance industry generated $196.4 million in gross premium at the end of last year, Insurance Association of Cambodia (IAC) president Huy Vatharo on Thursday said gross general insurance premium reached $87 million, micro-insurance $9 million, and life insurance $99 million.

“In addition to risk protection, life insurance provides savings for customers, meaning that if customers don’t face any unfortunate incidents they can get back some money at low interest rates,” he said.

However, Vatharo said both general and life insurance have distinct advantages as their approaches to risk coverage differ. He added that it is standard for life insurance premium to be higher than general insurance.

Life insurance first appeared in the Cambodian market in 2012 when Cambodia Life Insurance Plc, a joint-venture between the Cambodian government and four foreign private firms, was launched, becoming the first ever life insurance firm in the Kingdom.

In the same year, the sector was joined by Canadian life insurance firm Manulife and then Prudential Corporation Asia before other firms in the following years.

General Insurance services got off the ground in Cambodia in 1990 through the state-backed Cambodian National Insurance Company (Caminco).

According to IAC figures, as of last year there were eight life insurance companies operating in the Kingdom and 12 general insurance companies.

Remarkable growth

Speaking to reporters at an Asian Claims Convention seminar held in Phnom Penh on Thursday, Mey Vann, the General Department of Financial Industry director-general under the Ministry of Economy and Finance, on Thursday said the Cambodian insurance industry has seen remarkable growth of about 35 per cent per year over the last five years.

Cambodians have seen increasing incomes as the Kingdom has risen to lower-middle income country status, which has improved their living conditions and financial management.

“Cambodians are now able to save up in the financial sector and save through risk protection via the insurance sector,” he said. “The rise in insurance premium at 35 per cent per year over the last five years reflects the distribution of resources from economic growth.”

Vann did not disclose the amount that the sector has paid out in claims within the last five years, but said the amount is nearly half of the insurance premium that has been sold so far.

MOST VIEWED

  • Municipal hall releases map detailing colour coded Covid risks by commune

    Phnom Penh municipal governor Khuong Sreng released an official map detailing the red, yellow and dark yellow zones within the city under the new lockdown orders for Phnom Penh announced on April 26. The designation of red, dark yellow and yellow corresponds to areas with high,

  • Inter-provincial travel ban lifted; Phnom Penh and Takmao not exempted

    The government on April 25 decided to lift the inter-provincial travel ban and the closure of tourist attractions across the country, effectively immediately. The travel ban and closures of all resorts were imposed on April 6 and 17 respectively in a bid to curb the spread of Covid-19,

  • Gov't mulls extension of Phnom Penh, Takmao lockdown

    The Inter-ministerial National Commission for the Control and Enforcement of Lockdown held a video conference meeting on April 25 to review a draft document on the extension of lockdown in Phnom Penh and adjacent Kandal province’s Takmao town. The meeting was chaired by Minister of

  • Phnom Penh, Takmao lockdown extended for another week

    The government late on April 26 announced an extension of lockdown in Phnom Penh and adjacent Takmao town in Kandal province for another seven days – or longer if residents do not comply with Covid-19 preventive measures and the community outbreak does not subside – until May 5. According

  • Gov’t issues guidelines as lockdown nears end

    The government has issued a five-page set of instructions to be enforced when the three-week lockdown of Phnom Penh and adjacent Takmao town in Kandal province ends on May 6. According to an announcement signed by Prime Minister Hun Sen on May 4, the instructions cover a

  • Tottenham Hotspur to wear ISF Cambodia logo on jerseys in match against Sheffield United

    Last year, the Indochina Starfish Foundation (ISF) – an NGO providing education to underprivileged children in Cambodia – made global headlines with its “socially distanced” football initiative. This year, a world-class football club – Tottenham Hotspur FC – will wear special edition jerseys to show their support for ISF