Logo of Phnom Penh Post newspaper Phnom Penh Post - Kingdom’s dynamic, young population to drive Sovannaphum Life Assurance market growth




Kingdom’s dynamic, young population to drive Sovannaphum Life Assurance market growth

Content image - Phnom Penh Post
Tan says more Cambodians are now aware of Sovannaphum Life Assurance due to rising awareness.

Kingdom’s dynamic, young population to drive Sovannaphum Life Assurance market growth

Cambodia’s growing affluence and the energetic young population is certainly a catalyst for the insurance industry. With growing awareness on the importance of insurance, new generation buyers are now investing more in life protection plans.

Cambodia’s life insurance industry is only about seven years old but the market is expanding fast as more Cambodians begin to value the importance of financial planning, especially among the growing middle class population.

About 65 per cent of Cambodia’s population is said to be under the age of 35 years old.

The Kingdom is a prosperous market for the life insurance business. Last year, new policies issued saw a strong 92 per cent jump compared to the year before and industry growth was at 60 per cent.

“New policies issued increased by 92 per cent in 2018 compared to 2017, means lot of people are better convinced and accept insurance as risk management tool ,” Sovannaphum Life Assurance Public Limited Company CEO Tan Jiak Hiang told The Post.

People are investing to whether the rising medical costs or considering it as an alternative savings for their future, and with insurance companies driving awareness campaigns on the importance of life insurance, the perception towards insurance appears to be changing quickly as well.

Content image - Phnom Penh Post
Insurance companies can certainly reap the demographic dividend and the steadfast economic growth of the Kingdom.

“The endowment policy is popular. At the end of the policy term there is a return. Those in the mid-30s prefer to buy this policy because they have stable jobs and stable income. And, when you have a stable income, you may have excess funds and you may start to look into financial planning and many people look at it [insurance] as an alternative form of saving.

The home-grown Sovannaphum Life Assurance PLC., a joint venture company between Canadia Investment Holding PLC., the holding Company of Canadia Bank, and Muang Thai Life Assurance PCL from Thailand, entered the domestic market in 2016 and is enjoying robust growth in terms of market share.

Currently, the company boasts a 16 per cent market share in the life insurance segment compared to 10 per cent in 2018.

And, for the last two consecutive years, Sovannaphum life has been reputed as one of, if not the fastest growing life insurance company in Cambodia. For the local market, the company offers a boutique of products from education saving for parents, credit life insurance, health insurance package to group employee insurance.

Content image - Phnom Penh Post

“Our growth rate has been significant. The strong growth was contributed by our brand awareness which is getting stronger and stronger, now more Cambodian people know about (the Smile products). Our product is value for money.

“We are also strong in bancassurance channels, we are doing significant bancassurance business through several prominent and established banks and MFIs, and that is a plus point. We have a captive market and this gives us an edge.

“In our case, Sovannaphum caters for all different market segments – depending on our customers’ level of needs and affordability,” added Tan.

Insurance companies, such as Sovannaphum, are not only offering the much-needed financial safety net for individuals but they also contribute to the vital social stability in the country.

“For individuals generally, the insurance company plays a significant role. When a person purchases a life insurance policy, it can give peace of mind from the loan liability of the borrower, and may also cater to their families’ financial security needs in the future. So the insurance company also brings social stability for the country.

Sovannaphum’s credit life insurance is a typical example, a product which helps to pay off a borrower’s outstanding debts if the borrower passes on, or is afflicted with total permanent disability.

MOST VIEWED

  • Would you like fries with that? US burger chain makes Phnom Penh debut

    California-based The Habit Burger Grill restaurant chain is all set to serve up a delicious array of charbroiled burgers and sides at its newest international location in the centre of Phnom Penh. The Habit is “renowned for its award-winning Charburgers grilled over an open flame,

  • Angkor provides ‘valuable’ water storage

    The Apsara National Authority (ANA) has stored millions of cubic metres of water at reservoirs in the Angkor area after Cambodia experienced a series of rainstorms over the last few days. The storing of the water, besides serving temple conservation, will also be used to

  • Banteay Meanchey floods kill one more as death toll reaches 15

    As floodwaters start to recede in Pursat, Battambang and Pailin provinces and Phnom Penh, Banteay Meanchey continues to bear the brunt as one more person was killed on Monday, bringing the total number of flood-related deaths to 15 in the province this month. Banteay Meanchey provincial

  • Floods prompt evacuations in Kampong Speu

    Rain-induced floods and water flowing from Kampong Speu province have submerged the houses of 1,527 families living close to the Prek Thnot River in Spean Thma, Tien, Kong Noy and Roluos communes in Phnom Penh’s Dangkor district, according to data from local authorities. Spean Thma

  • Serving coffee with a side of robots

    The eye-catching glass building surrounded by greenery at the intersection of Streets 371 and 2002 in Phnom Penh’s Sen Sok district is more than just another coffee shop where you can while away a few hours. UrHobby House cafe is filled with robots and characters from

  • Banteay Meanchey flood victims receive aid

    Prime Minister Hun Sen on Wednesday provided aid to more than 10,000 families affected by flooding in Banteay Meanchey province’s Mongkol Borei district and offered his condolences to the 18 victims who drowned in the province over the past week. He said flooding had occured in