In the final quarter of 2023, Cambodia’s insurance market demonstrated resilience, with a slight adjustment in premiums, reporting a total of $77.8 million, a marginal decrease of 0.07 percent from the previous year’s corresponding period. The Insurance Regulator of Cambodia (IRC) provided these insights, highlighting nuanced shifts across various insurance categories.
General insurance saw a modest uptick, generating $29.5 million in premiums, marking a 1.14 percent increase year-on-year. However, life insurance experienced a slight contraction, with premiums totaling $46.6 million, reflecting a 1.28 percent decrease. In contrast, micro-insurance emerged as a growth segment, with premiums surging by 15.4 percent to reach $1.5 million.
The sector also observed a significant rise in gross claims, which amounted to $17 million during the quarter, escalating by 33.5 percent from the previous year. The total assets within Cambodia’s insurance landscape reached an impressive $1.08 billion by the end of Q4 2023, growing by 11 percent over the year.
This expansion is supported by a robust ecosystem comprising 18 general insurers, 14 life insurers, seven micro-insurance entities, along with a reinsurance firm, 20 insurance brokers, and numerous corporate agents and loss adjusters.
Hor Sovathana, the IRC’s deputy director-general, commended the collective efforts of various ministries, governmental bodies, and industry stakeholders in fostering the insurance sector’s growth. Emphasizing the critical role of insurance amid rising traffic incidents, property losses, and other risks, she advocated for enhanced cooperation and capacity building within the sector.
Looking ahead, the IRC aims to elevate the insurance contribution rate to 5.5 percent and achieve a per capita premium of $135 by 2030. This ambition calls for concerted efforts in human resource development and heightened public awareness. With an insurance density of approximately $20.53 per capita, the Cambodian insurance market is poised for further expansion, offering promising prospects for future development.
Source: Khmer Times
