Cambodia: Record growth in insurance

07 Feb 2017

Cambodia's insurance industry saw record growth in 2016 and was valued at US$113 million, according to a report from the Insurance Association of Cambodia (IAC), as cited in the Khmer Times. The IAC report, released on Monday, stated that this total gross premium represented 35.6% growth y-o-y.

“Insurance in Cambodia continues to grow year-on-year and the strong overall growth was due to increased coverage in the following areas: property and fire insurance, medical insurance, engineering insurance, personal accident insurance, and marine, aviation and transport insurance,” added the report. Life insurers contributed a gross premium of about $43.2 million, up 95%, while general insurers collected $70.4 million.

IAC chairman Huy Vatharo said that the report was a good indication that Cambodia’s insurance sector will continue to grow, for both general and life. The life insurance industry has been playing a crucial role in building a healthier financial future for Cambodian families while also driving the long-term economic development of the country.

“The total gross premium of the life insurance industry rose by 76% in the fourth quarter of last year compared with the same period in 2015 – up $12.3 million last year compared with $7 million the year before,” he said.

Manulife Cambodia CEO and IAC vice-chairman Robert Elliott was cited as saying that the growth of life insurance in the kingdom would help Cambodians manage risk effectively and also improve the economy.

“I am proud of life insurance in Cambodia as it has been expanding to safeguard Cambodian families. More significantly, the life insurance’s first year gross premium grew by 58% from $15.4 million in 2015 to $24.4 million in 2016,” he said. While life insurance is still somewhat nascent, and market size and penetration is among the lowest in ASEAN, it has risen rapidly since its first presence in 2012. There are now five life insurers and seven general insurers.

In 2016, Cambodia's insurance industry recorded over 51,000 new life insurance policies with total sum assured of over US$1 billion.