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

  • PM: No more quarantine for vaccinated travellers

    Cambodia is lifting all quarantine requirements for vaccinated inbound travellers entering Cambodia by air, waterway or land border checkpoints effective from November 15. Travellers will be required to take a rapid antigen test on arrival rather than waiting for the results of the lengthier polymerase chain

  • No payment required for travellers taking rapid Covid tests on arrival

    Ministry of Health officials said there would be no payment required for the rapid Covid-19 tests given to travellers who arrive in Cambodia from November 15 onwards after the quarantine requirement is lifted for fully vaccinated people. Health ministry spokeswoman Or Vandine told The Post on

  • General’s gun smuggling ring busted

    The Military Police sent six military officers to court on November 22 to face prosecution for possession of 105 illegal rifles and arms smuggling, while investigators say they are still hunting down additional accomplices. Sao Sokha, deputy commander of the Royal Cambodian Armed Forces and commander of

  • More Cambodians studying in US

    The number of Cambodian students studying at US colleges and universities in 2020-21 increased by 14.3 per cent over the previous year despite the Covid-19 pandemic, according to a recent US government report. The 2021 Open Doors report on International Educational Exchange showed that 848 Cambodian students studied

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration

  • Police arrest Canadian with 167kg of drugs

    The Phnom Penh Municipal Court on November 15 placed a Canadian national in pre-trial detention in connection with smuggling and possessing 167kg of illegal drugs. Deputy National Police chief in charge of anti-drug enforcement Mak Chito told The Post on November 15 that the man was arrested