Logo of Phnom Penh Post newspaper Phnom Penh Post - Life policies leading insurance growth

Life policies leading insurance growth

Life policies leading insurance growth

Life insurance was the fastest-growing segment of Cambodia’s rapidly expanding insurance market during the first half of 2016, clocking an impressive 113.2 per cent year-on-year growth in premiums, according to an industry report released yesterday.

However, the Kingdom’s insurance sector grew in all segments, with total gross premium of general insurance – which includes all non-life policies – rising to $37.4 million during the first half of the year, a 16.2 per cent year-on-year increase, the Insurance Association of Cambodia (IAC) said in a release.

Total gross premium across all segments of the insurance sector rose to nearly $56 million during the first half of the year, a 37 per cent year-on-year increase.

“I am very delighted to see both general and life insurance industries grow substantially from quarter to quarter,” IAC chairman Huy Vatharo said in a statement.

“This result shows a greater customer confidence in insurance sectors in the country.”

Vatharo attributed the growth to greater awareness of financial risk management and the important role played by educational campaigns. However, he notes major differences exist in the markets for the two types of insurance.

“The general insurance market is dominated by the commercial sector as companies seek to insure their construction projects and protect their infrastructure against risks like fire damage,” he explained.

“Insurance growth for individuals is much greater in the life insurance sector.”

Life insurance was introduced in Cambodia in 2012 and it is now currently offered by four different providers. Total gross premium reached $18.5 million during the first half of the year, according to Robert Elliott, vice-chairman of IAC and chief executive of Manulife Insurance.

“We have seen consistent growth across all life insurance providers,” he said. “Early entrants have invested in developing staff and this experience is helping drive the growth.”

Cambodia’s insurance industry is benefitting from the country’s strong economic growth over the last decade, its very young demographics and the greater access to information that followed the development of the internet and social media, he explained.

“More and more people appreciate the role life insurance plays in their financial planning, including protection, long term savings, retirement planning and children’s education,” Elliott said.

“Most of the growth is driven by the emerging middle class in the cities. However, we have seen strong and promising growth in provinces outside of Phnom Penh as well.”

The IAC has also been collaborating with the Ministry of Economy and Finance (MEF) to raise awareness of life insurance and improve understanding of the product through educational seminars.

The initiative is helping the country catch up to the levels of insurance coverage seen in other ASEAN countries, Elliott added.

MOST VIEWED

  • Hun Sen: Full country reopening to be decided in two weeks

    Prime Minister Hun Sen has announced that if the Covid-19 situation remains stable for 15 consecutive days from the end of the October 5-7 Pchum Ben public holiday, Cambodia will reopen fully, albeit in the context of Covid-19 whereby people have to adjust their lives to

  • Phnom Penh governor: Show Covid-19 vaccination cards, or else

    Phnom Penh municipal governor Khuong Sreng late on October 5 issued a directive requiring all people aged 18 and over and the parents of children aged 6-17 to produce Covid-19 vaccination cards when entering schools, markets, malls, marts, eateries and other business establishments that have been permitted

  • Cambodia seeks probe into 'false reports' on Hun Sen's alleged Cypriot passport

    Minister of Justice Koeut Rith on September 6 wrote a letter to his Cypriot counterpart Stephie Dracos requesting cooperation in investigating and providing the truth in relation to the "exaggerative and false allegations" that Prime Minister Hun Sen holds a Cypriot passport. In his letter, the

  • 'Pandora Papers' expose leaders' offshore millions

    More than a dozen heads of state and government, from Jordan to Azerbaijan, Kenya and the Czech Republic, have used offshore tax havens to hide assets worth hundreds of millions of dollars, according to a far-reaching new investigation by the International Consortium of Investigative Journalists (

  • Cambodia voted ‘world’s friendliest country’ in Rough Guides reader poll

    Cambodia ranked number one among the “World’s Friendliest Countries”, according to a reader poll conducted by London-based international website “Rough Guides”. Taking submissions through Twitter and Facebook, “Rough Guides”, a well-known travel agency and publisher of guidebooks, said the Kingdom “was by far the

  • Two major S’ville events could jumpstart international tourism: insiders

    Preah Sihanouk province is set to host two major international tourism-related events in late 2021 and early 2022, which insiders expect to ignite new interest among new and repeat foreign holidaymakers into visiting the Kingdom and significantly raise tourist arrivals from near zero in the Covid era.