After expanding into several markets across Asean, Malaysia-based Etiqa Insurance has entered the Cambodian market to offer a bouquet of insurance products – largely spurred by the fact that less than three per cent of the population is insured.

An insurance arm of the Kuala Lumpur-based Malayan Banking Bhd, Etiqa launched its operations on March 9 with the motto “bringing to the people of the Kingdom its fast and easy way of serving customers”, mainly using digital platforms.

“Etiqa started expanding across Asean beyond its traditional markets of Malaysia and Singapore in 2015. Thus far we have expanded into the Philippines and Indonesia, before setting our sights on Cambodia, a vibrant market where we think there is excellent growth potential.

“The Etiqa brand promise has always been about providing the best advice to suit the lifestyle and needs of the consumer, and delivering a fast and easy experience throughout the consumer journey, which includes making purchases, submitting claims, receiving payouts and getting assistance.

“We look forward to bringing this revolutionary promise to the Kingdom to serve all Cambodians,” Clarence Lit, CEO of Etiqa Life Insurance (Cambodia) Plc, told The Post.

Etiqa could capitalise on Cambodia’s youthful demographic.

Industry outlook

The Cambodian life insurance market appears promising, with relatively low penetration levels and more than 90 per cent of the population not insured, thus offering a vast untapped market for industry players.

In addition, the demographic factor of having 65 per cent of its people under 35 and a burgeoning middle-class, with a rising demand for quality healthcare, and retirement planning, plus a growing awareness of the importance of insurance was bound to encourage the proliferation of insurance products in Cambodia.

Nine life insurance companies are currently operating in the Kingdom and another 14 general insurance firms offer a variety of services from vehicle to fire insurance.

According to the Insurance Association of Cambodia, total gross premiums neared $143 million last year compared to $100 million in 2018 – representing 42.4 per cent growth.

Meanwhile, the total sum assured rose 49 per cent to $10 billion last year, in contrast to $6.8 billion in 2018.

Etiqa’s headquarters in the Malaysian capital Kuala Lumpur.

“We think the life insurance industry is poised for growth, and as the country becomes more informed and aware of the need for insurance, opportunities will arise. While our focus will be the middle to upper segments of the population, we do see opportunities in the mass segment,” Lit said.

Popular products in Cambodia are savings based, such as endowments, and Etiqa intends to offer more innovative protection products covering critical illnesses, he added.

“We already had in mind that we needed to differentiate ourselves from our peers. To this aim, we will be offering fast and easy customer products and services, along with the best advice to our customers.

“But what does this actually mean? We will be utilising the latest digital tools and technology, including sales via iPads and customer-needs analysis apps, to ensure that each client is recommended the right products in a comfortable setting, with their details captured correctly in our system. Eventually we will also expand our offerings via online sales,” Lit said.