September 26, 2022

Cambodia’s Insurance Sector Remarkably Maintains Positive Growth

Cambodia’s insurance sector has significantly maintained its positive growth as the gross premium reached approximately U$$300 million in 2021.

The remark was made as the Kingdom marked the “Insurance Day 2022” on Monday.

Since late 1980s till now, 94 insurance institutions which include 18 general insurance companies, 14 life insurance companies, 7 micro-insurance companies, 1 reinsurance company, 18 insurance brokers, 34 corporate agents, and 2 loss adjusters are operating in Cambodia.

Along with the increase in the number of insurance companies, the size of the insurance market was also growing rapidly, with the gross premium increasing to approximately US$300 million in 2021, and the average growth rate for the last five years is about 20 percent.

The insurance market has remarkably maintained its positive growth at 8 percent in 2020 and about 10 percent in 2021 despite the COVID-19 pandemic.

The total sum insured in 2021 was around US$204 billion with more than 1 million policies, and the gross claim paid of approximately US$45 million.

Nowadays, Cambodian insurance market has about US$948 million in total assets, US$428 million in shareholders’ funds, and has created nearly 4,000 full-time employment, and 10,000 part-time jobs.

Speaking at the event, H.E. Bou Chanphirou, Director General of Insurance Regulator of Cambodia, said that the insurance penetration rate was about 1.11 percent and insurance density was around US$18.75 per person in 2021.

“It clearly shows that the growth of Cambodian insurance sector is still relatively low compared to the region and the world, which indicates that Cambodia’s insurance market still has more room to grow,” he said.

To fulfill the role in regulating, supervising, and developing Cambodia’s insurance sector, the Insurance Regulator of Cambodia of Non-Bank Financial Services Authority has prepared “Strategic Development Plan for Insurance Sector 2021-2030” and “Institutional Development Plan for Insurance Regulator of Cambodia 2021-2025” which were already approved by the Council of Non-Bank Financial Services Authority, in contribution to building the necessary foundations of the non-bank financial sector to propel Cambodia towards achieving the objective of “Cambodia Vision 2030-2050”.

Source: Agency Kampuchea Press