Cambodia’s Insurance Industry: A Steady Ascent in 2023
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In the third quarter of 2023, Cambodia’s insurance industry demonstrated resilience and growth, marking a notable uptick in premiums compared to the same period the previous year. According to a report released by the Insurance Regulator of Cambodia (IRC), the sector recorded a premium of $87.3 million, reflecting a 2.6 percent increase from $85 million in the corresponding quarter of the preceding year.
Driving this growth were diverse players within the industry, including 18 general insurers, 14 life insurers, seven micro-insurance companies, one reinsurance firm, 20 insurance brokers, and 34 corporate agents and loss adjusters.
The general insurance segment notably saw a robust year-on-year increase of 8.74 percent, with a gross premium reaching $37.2 million. In contrast, life insurance premiums totaled $48.1 million, experiencing a modest decrease of 2.4 percent. Meanwhile, the micro-insurance sector demonstrated notable growth, with premiums reaching $1.9 million, marking a substantial 28.3 percent increase.
The report highlighted that insurers disbursed a total of $17 million in gross claims during the period, signifying a significant uptick of 33.5 percent from the previous year’s figure of $12.8 million.
As of the third quarter of 2023, Cambodia’s insurance sector boasted total assets amounting to $1.06 billion, indicating a commendable year-on-year increase of nine percent. This growth is a testament to the sector’s steady advancement over the past two decades, as noted by Ros Seilava, Secretary of State at the Ministry of Economy and Finance and Vice-Chairman of the Council of the Board of Non-Banking Financial Service Authority.
Despite this growth, Seilava identified a critical challenge to further expansion – a significant lack of public awareness regarding the benefits of insurance. To address this issue, he emphasized the need for intensified public outreach and education efforts to effectively communicate the value of insurance to the general population.
The report underscored the importance of the insurance sector to Cambodia’s economy, contributing approximately 1.17 percent to the country’s gross domestic product (GDP) annually. With an insurance density of about $20.53 per person, indicating the average expenditure on insurance, there is evident potential for future development within the sector.
Looking ahead, the IRC has set ambitious goals for the industry, aiming for an insurance contribution rate of 5.5 percent and an insurance premium rate of $135 per capita by 2030. Achieving these targets will require concerted efforts from all stakeholders, including the strengthening of human resources capacity and comprehensive public awareness campaigns. The current positive trajectory and untapped potential suggest a promising future for Cambodia’s evolving insurance landscape.
Source: Khmer Times
