Insurance segment registers $27M in April gross premium

Insurance segment registers $27M in April gross premium

The Kingdom’s insurance sector saw its total gross premium reach $27 million in April this year, up seven percent from April last year, a report from the Insurance Regulator of Cambodia (IRC) showed on Monday.

Life insurance recorded a high growth of 9.83 percent to $16.33 million, while general insurance saw a nearly flat growth of 2.07 percent to $10.93 million during the same period, said the report.

The total amount of claims paid out by the insurers stood at $8.18 million, up 56 percent from $5.21 million recorded in the same period last year.

Endowment policies accounted for the largest share of life insurance sales at 73 percent, followed by term life. An endowment policy is a type of life insurance that combines life coverage with a savings component, providing a lump sum payout at the end of the policy term or upon the policyholder’s death.

It offers financial protection for your family in case of your death and also helps you save for future goals like retirement or a child’s education.

Under the general insurance umbrella, the highest sale was recorded by property insurance, followed by medical and auto insurance with market share of 33 percent and 18 percent respectively.

Bou Chanphirou, Director General, IRC, said the two types of insurance – general and life – are considered essential products with the industry demand increasing day by day.

“The insurance sector plays a crucial role in supporting the social security system and proactively contributing to national economic development,” he said.

The insurance penetration and insurance density numbers illustrate that the Cambodian insurance market has potential room for further growth, he said, adding that there is also a need for public outreach and education on the benefits and advantages of insurance.

The Cambodian insurance market has a total of 105 insurance institutions, comprising 18 general insurance companies, 14 life insurance companies, seven micro-insurance companies, one re-insurance company, 20 insurance brokers, 39 insurance agents, three loss adjustors, two claim management firms and one actuarial company.

The insurance industry currently possesses over $1 billion in total assets.

The Cambodian insurance market stood 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.

khmertimeskh