Logo of Phnom Penh Post newspaper Phnom Penh Post - Dai-ichi Life Insurance to offer financial security for Cambodians​

Dai-ichi Life Insurance to offer financial security for Cambodians​

Content image - Phnom Penh Post
Dai-ichi Life became the first Japanese insurance company to enter the Kingdom. Photo supplied

Dai-ichi Life Insurance to offer financial security for Cambodians​

Japan’s life insurer, Dai-ichi Life Holdings Inc. made its maiden entry into the Kingdom with plans to offer long-term financial protection and savings products for the growing Cambodian insurance market.

The company, with over a century of experience in life insurance business, established its subsidiary Dai-ichi Life Insurance (Cambodia) PLC on April 24 and teamed up with Vattanac Bank to roll out its services in the Kingdom.

“Dai-ichi Life Group has decided to enter this market to help meet the long-term insurance protection and savings needs of the Cambodians,” Dai-ichi Life Insurance (Cambodia) Plc CEO Allen Thai told The Post.

The Cambodian insurance sector, especially the life insurance segment, offers a promising opportunity for foreign companies due to the country’s steady economic growth and a rising middle class population – both impetus for the industry’s growth.

Moreover, insurance penetration among the 16 million people is relatively low, reported to be under three per cent of the Kingdom’s population.

“The Cambodian population is very young and growing fast. In the past decade Cambodia’s economic growth has been one of the fastest in Asia averaging over seven per cent annually."

“These positive economic developments have given rise to the emergence of the middle-income class whose demand for life insurance is beginning to increase,” added Thai.

According to the Insurance Association of Cambodia, 12 general insurance companies and eight life insurance companies are operating in the Kingdom as of last year.

Cambodia’s insurance sector is one of the most dynamic market in the region. It chalked up a healthy 30 per cent growth last year compared to 2017, with the sector generating over $190 million in gross premiums in 2018.

Content image - Phnom Penh Post
A ribbon cutting ceremony to launch Dai-ichi Life Insurance (Cambodia) Plc on April 24. Photo supplied

With per capita income hovering around $1,500 last year and more youth entering the job market could further stimulate demand for insurance coverage.

Dai-ichi is optimistic about its growth prospects despite being a late entrant into the local market.

“Life insurance penetration in Cambodia is very low and the demand for life insurance is rapidly rising. Coupled with Cambodia’s robust economic growth, our long Japanese heritage and high trust Cambodian consumers often attach to a Japanese brand, I am very optimistic about our growth in this expanding market in 2019 and beyond."

“Cambodia continues enjoying favourable economic and demographic fundamentals. Emergence of the middle-income class and rapidly increasing life insurance awareness will power the life insurance sector forward further. I am very optimistic about its growth,” said Thai.

Dai-ichi offers a boutique of products. It provides financial protection and savings products for individuals and families who want to save for future events, such as for their children’s higher education costs, provide income to surviving family members should the breadwinners no longer be there to care for them.

“Our products are very flexible and affordable. We distribute our life insurance products through our financial planning consultants and partner banks in Phnom Penh and key cities,” he added.

Content image - Phnom Penh Post
Thai: Growing middle class will drive demand for insurance. Photo supplied

Thai said the domestic life insurance sector has been performing extremely well in the last several years. Year-on-year total premium growth was over 50 per cent in the last couple of years.

This makes Cambodia one of the fastest growing insurance markets in the region. It is now more than $100 million industry in terms of total premium generated every year.

This provides a steady flow of long-term capital which will further benefit Cambodia’s continued economic development.

MOST VIEWED

  • Hong Kong firm done buying Coke Cambodia

    Swire Coca-Cola Ltd, a wholly-owned subsidiary of Hong Kong-listed Swire Pacific Ltd, on November 25 announced that it had completed the acquisition of The Coca-Cola Co’s bottling business in Cambodia, as part of its ambitions to expand into the Southeast Asian market. Swire Coca-Cola affirmed

  • Cambodia's Bokator now officially in World Heritage List

    UNESCO has officially inscribed Cambodia’s “Kun Lbokator”, commonly known as Bokator, on the World Heritage List, according to Minister of Culture and Fine Arts Phoeurng Sackona in her brief report to Prime Minister Hun Sen on the night of November 29. Her report, which was

  • NagaWorld union leader arrested at airport after Australia trip

    Chhim Sithar, head of the Labour Rights Supported Union of Khmer Employees at NagaWorld integrated casino resort, was arrested on November 26 at Phnom Penh International Airport and placed in pre-trial detention after returning from a 12-day trip to Australia. Phnom Penh Municipal Court Investigating Judge

  • Sub-Decree approves $30M for mine clearance

    The Cambodian government established the ‘Mine-Free Cambodia 2025 Foundation’, and released an initial budget of $30 million. Based on the progress of the foundation in 2023, 2024 and 2025, more funds will be added from the national budget and other sources. In a sub-decree signed by Prime Minister Hun Sen

  • Two senior GDP officials defect to CPP

    Two senior officials of the Grassroots Democratic Party (GDP) have asked to join the Cambodian People’s Party (CPP), after apparently failing to forge a political alliance in the run-up to the 2023 general election. Yang Saing Koma, chairman of the GDP board, and Lek Sothear,

  • Cambodia's poverty cut in half from 2009 to 2019: World Bank report

    A report published by the World Bank on November 28 states that Cambodia’s national poverty rate fell by almost half between 2009 and 2019, but the Covid-19 pandemic recently reversed some of the poverty reduction progress. Cambodia’s poverty rate dropped from 33.8 to 17.8 per cent over the 10