Insurance Sector in Cambodia Witnesses 20 Percent Growth in Premiums in 2023
The insurance sector in Cambodia saw a significant growth in 2023, with the gross premiums reaching $342 million, marking a 20 percent increase from the previous year’s $331.8 million. This data was released by the Insurance Regulator of Cambodia (IRC), highlighting the upward trajectory of the industry within the nation.
Cambodia’s insurance landscape is comprised of 41 companies, boasting collective assets surpassing the $1 billion mark, as noted by Bou Chanphirou, the Director General of the IRC. The industry’s expansion is attributed to a diverse range of players including 18 general insurance providers, 14 life insurance firms, seven micro-insurance entities, a single reinsurance company, alongside 20 insurance brokers, 34 corporate agents, and loss adjusters.
During an overseas seminar titled ‘The Mission of Non-Life in Insurance Industry for the well-being of all’, Chanphirou emphasized the remarkable growth of Cambodia’s insurance sector over the past two decades, supported by the country’s sustained political stability and economic progress. He pointed out the sector’s critical role in bolstering social security and contributing to the national economy.
Despite the growth, the insurance penetration in Cambodia remains modest, with a contribution rate to the economy at 1.14 percent and an insurance density of just $20.72 per person in 2023. These figures suggest a significant potential for further development within the Cambodian insurance market. However, challenges such as the scarcity of specialized insurance skills and limited public understanding of insurance benefits persist.
The IRC aims to elevate the insurance contribution rate to 5.5 percent and achieve an insurance premium rate of $135 per capita by 2030. To realize these ambitious targets, concerted efforts to enhance human resource capabilities and elevate public awareness about insurance are deemed crucial.
The seminar brought together esteemed speakers with profound expertise in the insurance field, intending to disseminate valuable insights and knowledge about the industry. The event was designed to not only enlighten participants about the intricacies of insurance but also to fortify the professional acumen of individuals in the sector, thereby facilitating the growth of the insurance market and contributing to the broader economic landscape of Cambodia.
Source: Khmer Times
