Logo of Phnom Penh Post newspaper Phnom Penh Post - Insurance sector revenue surges 16.3% in Jan-Mar

Insurance sector revenue surges 16.3% in Jan-Mar

Content image - Phnom Penh Post
Traffic accidents along Street 60m in Phnom Penh's Meanchey district. The insurance sector paid out around $11.3 million in claims over January-March, with general, life and micro-insurance accounting for $9.1, $2.1 and $0.2 million. Heng Chivoan

Insurance sector revenue surges 16.3% in Jan-Mar

The insurance sector in Cambodia earned about $85 million in gross written premiums in the first quarter of this year, increasing by 16.3 per cent year-on-year, according to the Insurance Association of Cambodia (IAC).

Of that, general and life insurance premiums came to $39.1 and $44.6 million, respectively, surging by 19.5 and 15.5 per cent year-on-year, and accounting for 46 per cent and nearly 53 per cent of the total.

Micro-insurance premiums were to the tune of $1.2 million, down by 26.7 per cent year-on-year, and accounted for just 1.4 per cent of the total, the IAC said.

The insurance sector paid out around $11.3 million in claims over January-March, with general, life and micro-insurance accounting for $9.1, $2.1 and $0.2 million.

As of March 31, there were nearly 1.2 million active policies, categorised as “general” (510,000), “life” (380,000) and “micro-insurance” (280,000).

IAC chairman Huy Vatharo told The Post on June 28 that the insurance sector in Cambodia remained in positive territory despite Covid-19’s sweeping devastation across various economic sectors.

“Positive growth in the market reflects the need for insurance services, which people and businesses institutions use as a means of hedging against various risks that lead to financial hardship. In other words, they do not risk taking risks that could lead to property damage, accidents or other losses that could lead to financial loss,” he said.

Forte Insurance Group CEO Youk Chamroeunrith said his firm did not face any significant challenges in the first quarter, even as the Kingdom grappled with the February 20 community transmission of the novel coronavirus.

In fact, he said, premiums grew by 10 per cent year-on-year during the quarter, “largely due to health and motor insurance”.

He attributed the continued growth in the Kingdom’s insurance sector to Cambodians’ increased “understanding of the benefits and necessity” of policies, higher incomes and a large number of unserved and underserved customers.

In developed countries, total premiums account for about seven per cent of gross domestic product (GDP), while that figure is just 0.6 per cent in the Kingdom, he said.

Chamroeunrith had previously noted that the rate is between six and seven per cent in neighbouring countries.

IAC said it currently comprises 33 insurance companies – 16 general insurers, 11 life insurers, five micro-insurers and one reinsurer.

MOST VIEWED

  • 12th Cambodia int’l film festival to see return of Hollywood star

    Phnom Penh is set to come alive with the magic of cinema as the highly anticipated 12th Cambodia International Film Festival (CIFF) takes centre stage. Boasting an impressive line-up of 188 films from 23 countries, including captivating shorts, feature films, documentaries and animation, the festival promises an

  • Brawl marrs football final as Indonesian take gold in seven goal thriller

    The Indonesian men's U22 men national football team were crowned champions of the 32nd SEA Games in Cambodia, defeating Thailand 5-2 in extra time on May 16 at Olympic National Stadium in Phnom Penh. The match was marred by an ugly incident that occured in the 91

  • Bareknuckle champion wants Kun Khmer fighter

    Dave Leduc, who is the current openweight Lethwei boxing champion in Myanmar, has announced that he will travel to Cambodia this year to challenge SEA Games gold medallist Prum Samnang any time that is convenient, after their planned match later this month in Slovakia was

  • Candlelight Party disqualified from July general election

    The National Election Committee (NEC) has disqualified the Candlelight Party (CP) from contesting the upcoming general election, citing a lack of valid documentation. NEC spokesman Khorn Keomono said the CP failed to fulfil one of the three main requirements: including original documentation proving their registration

  • Thong Khon calls for orderly SEA Games closing ceremony

    Thong Khon, Minister of Tourism and permanent vice-president of the Cambodia SEA Games Organising Committee (CAMSOC), calls on all people who have received tickets to the May 17 closing ceremony of the biennial multi-sports extravaganza at the Morodok Techo National Stadium to ensure that the event

  • 1.4 billion dollar Phnom Penh-Bavet expressway due in four years

    The Government, through the Ministry of Public Works and Transport, has officially signed a public-private partnership agreement with a private company for the construction of a Phnom Penh-Bavet Expressway project that will connect the capital to Svay Rieng province. The budget for the project is