Subscribe Search

Search form

Logo of Phnom Penh Post newspaper Phnom Penh Post - Managing risk catches on

Managing risk catches on

Managing risk catches on

Despite the current stability of the Cambodian business sector, insurance against uncertainty has never been a more profitable business.

In the Kingdom’s current climate of economic dynamism, a new group of insurance companies have positioned themselves as a safety-net for adventurous investments, risky financial commitments and – even for the less entrepreneurially inclined – simple misfortune.

“Insurance is all about risk management,” said Charles Cheo, deputy managing director of Forte Insurance, one of Cambodia’s leading insurance firms.

“Branching out or taking risks is commonplace in all businesses, so having the assurance and support of the right insurance company makes exploring the unknown less of an anxiety. Insurance adds to your confidence to tackle greater and more promising challenges.”

According to Cheo, Forte Insurance has grown by more than 25 percent each year since arriving in Cambodia in 1999.

Insurance companies have also seen a steady growth in personal insurance plans, and as the personal wealth of Cambodians increases, more and more are choosing to purchase insurance as a guarantee against unforeseen circumstances, said Seng Someak, sales manager of Infinity Insurance.

Someak said that affordable motorbike insurance has been a popular area of growth for Infinity, which has been operating in Cambodia since February 2007 in partnership with Infinity Financial Solutions.

According to Someak, a client can purchase third-party insurance on a $1,500 motorbike for just $40, and can add insurance for their own bike for an extra $37.

Youk Chamroeunrith, Forte’s director, said insurance companies have faced challenges convincing Cambodians that insurance can be a useful, and necessary, long-term financial investment.

“In developing countries such as Cambodia and Laos, people do not really think about insurance. They are thinking of what is necessary for their day-to-day lives,” said Chamroeunrith. “People in developed countries think of insurance because they know they need financial protection.”

But Chan Sophal, president of the Cambodian Economic Association, says that the Kingdom’s recent political stability and economic development has created a predictable business environment which will lead to the future expansion of the insurance sector here, explaining the recent influx of new insurance companies into the Cambodian market.

“They see that Cambodia will grow more and more in the future. Insurance companies anticipate a much bigger market in the future,” he said.

While insurance companies profit by insuring businesses and individuals against uncertainty, extreme instability in Cambodia throughout the 1990s stunted the industry’s growth.

“I think Cambodia is now politically stable and enough people have stable jobs. There’s a good deal of certainty and more people have reason to use insurance,” Sophal said. “Some uncertainty will always exist.”


  • Kak Channthy, Cambodian Space Project frontwoman, killed in crash at 38 [Updated]

    Updated 5:05pm, Tuesday, March 20, 2018 Kak Channthy, frontwoman of popular The Cambodian Space Project, was killed Tuesday morning in a traffic accident in Phnom Penh. She was 38. Channthy, the internationally recognised singer-songwriter also known as “Srey Thy”, was reportedly travelling in a tuk-tuk on the city's

  • Australian police investigating death threat against Kem Ley's widow

    Updated: 10:17am, Friday March 23, 2018 Australian authorities on Thursday confirmed they have launched an investigation into a crudely written death threat sent tothe family of slain political analyst Kem Ley and Victoria state MP Hong Lim. The typed letter, reported to Victoria police last week, is

  • Apparel groups including H&M and Gap urge Cambodia garment industry reform, seek meeting with Hun Sen

    A group representing some of the largest apparel brands in the US and Europe – including Gap, H&M and ASOS – expressed “growing concern” on Tuesday over several controversial labour laws and ongoing court cases against unionists described as restrictive and unjust. In an open letter

  • Hun Sen says Montagnards don’t exist in Cambodia

    Prime Minister Hun Sen once again attacked ex-opposition leader Sam Rainsy for pledging “autonomy” to Montagnards, claiming – seemingly incorrectly – the ethnic minority does not exist in Cambodia. “We respect all minorities such as Jarai, Steang, Phnong, but we have never had Montagnards,” the premier said