Insurance hits $32M in gross premium in June

Insurance hits $32M in gross premium in June

The insurance penetration and insurance density numbers illustrate that the Cambodian insurance market has potential room for further growth.

Cambodia’s insurance sector saw its total gross premium reach $32.4 million in June of this year, 13.8 percent from $28.4 million in June last year, a report from the Insurance Regulator of Cambodia (IRC) showed on Sunday.

Life insurance recorded a high growth of 17.6 percent to $19.7 million, while general insurance saw a growth of 8.3 percent to $12.6 million during the same period, said the report.

The total amount of claims paid out by the insurers stood at $5.3 million, down 22.3 percent from $6.8 million recorded in the same period last year, stated the report.

Endowment policies accounted for the largest share of life insurance sales at 74 percent, followed by term life at 17 percent.

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.

Under general insurance, the highest sale was recorded by property insurance at 44 percent, followed by vehicle and health insurance with market share of 16 percent and 14 percent, respectively.

IRC Director General Bou Chanphirou said IRC has made its efforts to disseminate and educate citizens nationwide about the insurance sector. Dissemination will help consumers understand the legal process of the insurance sector and benefits.

“The problem facing the insurance sector is trust, as insurance contracts are long-term contracts, so customers may be concerned about the stability of the insurance company. Therefore, experts are required to clarify and explain to the public the benefits of insurance,” he said during a workshop on insurance sector early August.

khmertimeskh