Kingdom’s insurance industry records 8% growth
Kingdom’s insurance industry records 8% growth
Despite challenges, Cambodia’s insurance industry demonstrated resilience, reporting a gross premium of $94.48 million in the third quarter (Q3) of this year.
This marks a modest increase of about 8.1 percent from 87.38 million over the same period last year, a report from the Insurance Regulator of Cambodia (IRC) showed on Wednesday.
Life insurance recorded a high growth of 11.2 percent to $53 million, while general insurance saw a growth of 4.3 percent to $40.91 million, said the report.
Endowment policies accounted for the largest share of life insurance sales, followed by term life. In general insurance, the highest sale was recorded by property insurance, followed by medical and auto insurance.
The total amount of claims paid out by the insurers was $24.37 million, up 46.8 percent from $16.59 million recorded in the same period last year.
The insurance penetration and insurance density numbers illustrate that the Cambodian insurance market has potential room for further growth,” said Bou Chanphirou, Director General, IRC.
“There is also a need for public outreach and education on the benefits and advantages of insurance,” he said.
The Cambodian insurance market has a total of 105 insurance institutions, comprising 18 general insurance companies, 14 life insurance companies, seven microinsurance companies, one re-insurance company, 20 insurance brokers, 39 insurance agents, three loss adjustors, two claim managements and one actuarial company.
The report said the growth was generated by 18 general insurers, 14 life insurers, seven micro-insurance companies, and one reinsurance firm.
The country’s insurance industry has over $1 billion in total assets.
The Cambodian insurance market was at $344 million in 2023, with an insurance penetration of 1.16 percent of the GDP and an insurance density of around $21.02 per person.
IRC has stated that the rise in the premium reflected the strength of the market in the Kingdom, as the insurance sector contributed about 1.17 percent to the country’s gross domestic product (GDP) annually.
The IRC has set a goal of achieving an insurance contribution rate of 5.5 percent and an insurance premium rate of $135 per capita by 2030. To achieve the goal, all stakeholders have to strengthen the capacity of human resources with public awareness campaigns.
