Logo of Phnom Penh Post newspaper Phnom Penh Post - Sovannaphum Life Assurance aims to double its premium sales this year

Sovannaphum Life Assurance aims to double its premium sales this year

Content image - Phnom Penh Post
Tan: Insurance companies that enter Cambodia help to promote awareness on life insurance.

Sovannaphum Life Assurance aims to double its premium sales this year

After posting an impressive growth in its premium sales last year, home-grown Sovannaphum Life Assurance Plc. is upbeat about its growth prospects this year as it could even double 2018’s sales figures.

“We have done well. We were awarded as the fastest growing life insurance company in 2018. In 2018 itself our new business market was 10 per cent compared to one per cent in the previous year. It is a big jump. This market share has further grown more than 17 per cent in Q1 [first quarter] 2019,” Sovannaphum Life CEO Tan Jiak Hiang told The Post.

Sovannaphum Life, which is a joint venture company between Canadia Investment Holding PLC., the holding Company of Canadia Bank, and Thailand’s Muang Thai Life Assurance PCL, has been operating in the Kingdom for over three years.

The once nascent Cambodia’s life insurance sector is now flourishing, largely buoyed by the Kingdom’s steady economic growth averaging seven per cent annually, rising middle class, a young population and more importantly the growing awareness on the importance of life insurance among the public.

But the penetration level remains low. Only about 400,000 people of the 16 million population are currently insured. Life insurance entered the domestic market only in 2012.

According to the Insurance Association of Cambodia, sales of life insurance grew 50.6 per cent compared to general insurance with 15 per cent growth.

Content image - Phnom Penh Post
Sovannaphum Life Assurance is confident about future growth as a Cambodia’s life insurance market remains untapped.

“The total gross premium of the insurance industry rose 30 per cent in 2018 largely driven by life insurance segment. Gross premium was valued at $196.4 million last year, compared to $151.6 million in 2017.

“Life insurance is relatively new, only about seven years now but the industry is growing aggressively. One and a half years ago there were only seven [players] but now there are 10 or 11 [life insurance companies]. When more companies come into this market, more and more people are educating the general public on insurance. So the general awareness is getting better and more people understand the importance of insurance business,” added Tan.

Tan, a Singaporean veteran with 30 years expertise in life insurance sector, says Cambodia has great potential for insurance companies as a bulk of the population is uninsured.

“[According] to 2018 insurance statistics, the industry new policies issued almost doubled, [a] 92 per cent growth compared to 2017. It is a good growth rate, now people are more aware and people are accepting life insurance.

Content image - Phnom Penh Post
Promoting insurance awareness among the public.

“Life insurance penetration rate is less than one per cent over GDP [gross domestic product] compared to Malaysia’s four or five [penetration rate] and Singapore’s eight. After so many years of business growth these countries achieved these rates only now but look at this country [Cambodia], it is already 0.2 per cent. There is a big gap and there is lot of potential,” added Tan

Sovannaphum Life Assurance offers a range of products loan protection, education saving plan, flexi saving and life solutions (covers critical illness costs and other life insurance benefits).

“The credit life and education saving are our key selling products. These products meet the Cambodian customers’ needs.

“Cambodian people are concerned of their children’s education and protecting their collaterals when they take loan from financial institutions.

“We are enjoying expansion growth, in line with the life insurance market in Cambodia,” he added.

Content image - Phnom Penh Post
Tan points at some of the products offered by the company.

MOST VIEWED

  • Cambodia rejects UN rights claim

    Cambodia's Permanent Mission to the UN Office in Geneva on Friday hit back at David Kaye, the UN special rapporteur on the Promotion and Protection of the Right to Freedom of Opinion and Expression after he raised concerns over the repression of free speech and

  • Snaring may spawn diseases

    The World Wildlife Fund (WWF) has warned that snaring of animals has become a crisis that poses a serious risk to wildlife in Southeast Asia and could spawn the transmission of zoonotic diseases to humans. Its July 9 report entitled Silence of the Snares: Southeast Asia’

  • Ex-party leader, gov’t critic named as secretary of state

    A former political party leader known for being critical of the government has been appointed secretary of state at the Ministry of Rural Development, a royal decree dated July 9 said. Sourn Serey Ratha, the former president of the Khmer Power Party (KPP), told The Post

  • Residence cards set for over 80,000 immigrants

    The Ministry of Interior plans to grant residence cards to more than 80,000 immigrants to better keep track of them. The ministry announced the plan on July 10, following the results of an immigration census. “An inter-ministerial committee and many operational working groups have been set up

  • Kingdom, US vow stronger ties

    At an academic forum on Saturday to celebrate 70 years of Cambodia-US diplomatic ties, Cambodian researchers and officials expressed hope of encouraging US investments and for that country to deepen and improve its bilateral relations. Held at the Royal Academy of Cambodia, it reviewed the past 70

  • Fifteen Cambodians from Saudi get Covid-19

    The Ministry of Health on Sunday confirmed 15 more imported cases of Covid. The 15 men ‒ all Cambodian aged 21 to 33 ‒ arrived from Saudi Arabia on Friday via a connecting flight in Malaysia. They were travelling with 79 other passengers, three of them women. The ministry said 80 of the

  • Ministry requests school opening

    The Ministry of Education, Youth and Sport on Thursday said it would request a decision from Prime Minister Hun Sen to allow a small number of schools to reopen next month. Ministry spokesman Ros Soveacha said if the request is granted, higher-standard schools will reopen

  • Kingdom eyes India FTA, China deal set for August

    Cambodia is studying the possibility of establishing a bilateral free trade agreement (FTA) with India to open a new market with the second-largest regional economy. This comes as an FTA with China is scheduled to be signed next month while similar negotiations with South Korea

  • Judge lands in court after crashing into alleged thief

    Sen Sok district police on Thursday sent a Koh Kong Provincial Court judge to the Phnom Penh Municipal Court on manslaughter charges after he crashed his car into a woman riding a motorbike on Wednesday, killing her. District police chief Hour Meng Vang told The

  • Vietnamese workers in Koh Kong questioned

    The General Department of Immigration (GDI) is questioning 49 Vietnamese nationals who were working illegally in Koh Kong province to build a case and send them back to Vietnam, its Department of Investigation and Procedure director Kem Sarin said on Thursday. GDI forces and provincial authorities