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In the first nine months of 2024, gross insurance premiums in Cambodia reached approximately $270 million, marking a slight increase compared to the same period in 2023. Experts attributed the modest growth to the effects of both internal and external factors.
Data from the Insurance Regulator of Cambodia (IRC) revealed that, from January-September, total gross insurance premiums amounted to over $272 million, a 3% increase compared to the $264 million from the same period of 2023.
According to the IRC, the Kingdom currently has 18 general insurance companies, 14 life insurance companies, seven microinsurance companies, one reinsurance company, 20 insurance brokers and several other related firms.
Alongside the gross premiums collected, insurance companies incurred gross claims of approximately $55.6 million in the first nine months of 2024, representing a 14.13% increase from the same period in 2023.
Yuk Chamroeunrith, CEO of Forte Group, spoke to The Post on October 31 about the contributing factors to the slow growth.
He explained that externally, the market has been affected by successive crises, such as the Covid-19 pandemic, geopolitical tensions between major powers, the Russia-Ukraine war and conflicts in the Middle East. These issues have cast uncertainty over global economic growth, reducing both cash flows and investments.
He added that, on an internal level, the Cambodian population's understanding of the insurance sector remains limited, as this industry has only recently developed over the past two decades. In contrast, insurance has been established in advanced economies for centuries. The financial sector in Cambodia faces similar challenges, especially during a global economic downturn.
“Whenever the banking sector is affected, the insurance sector will also feel the impact. These two sectors are always interconnected,” he said.
Chamroeunrith noted that there are currently three main types of insurance in Cambodia: general insurance, life insurance and microinsurance. Microinsurance, in particular, has seen significant growth, though its relatively low premiums (sometimes starting as low as $1) mean it does not yet significantly contribute to the overall insurance sector in Cambodia.
“Microinsurance has grown by 60-70% in proportional terms, but in terms of absolute premiums, it is still quite small,” he explained. “In recent times, we’ve seen notable growth.”
“When the global economy recovers, I’m optimistic that Cambodia’s insurance sector will see stronger growth, potentially returning to double-digit growth as it did before the Covid-19 pandemic,” he added.
Bou Chanphirou, director-general of the IRC, addressed the "Insurance Day 2024”, event, held in Preah Sihanouk province from July 27-28. He noted that the Kingdom’s insurance industry has seen remarkable growth over the past five years. In 2023, the market reached approximately $344 million, contributing around 1.16% to the GDP and a per capita insurance density of $21.02.
“The Cambodian insurance market still has substantial potential for future growth," he said. "However, challenges such as a lack of public awareness about the benefits of insurance and customer confidence in insurance companies require more outreach and public education on the importance and benefits of insurance."
According to the IRC's report, Cambodia’s gross premium income in 2023 was $344.26 million, a 3.6% increase from $332.35 million in 2022.
