Cambodia’s Insurance Sector Keeps Growing in Q1

Cambodia’s Insurance Sector Keeps Growing in Q1

The Cambodian insurance sector continued its positive momentum through the first quarter of 2021 with a growth rate at 16.3 percent. That rate of growth was down somewhat from Q12020’s 20.8 percent.

Total insurance premiums for Q12021 were $85 million according to a report from the Insurance Association of Cambodia (IAC) that was issued on Monday. The IAC report cited that the general insurance and life insurance categories continued to see growth but expansion in the micro-insurance category actually reversed, with a loss in total revenue from the same time period last year.

General insurance premiums increased by nearly 20 percent. The life insurance category was up 15.5 percent. Micro insurance though decreased by 27 percent, stated the report.

Q1 2021 saw an insurance market size of 1.2 million customers comprised of 380,000 life insurance clients, 510,000 purchasers of general insurance (health and individual accident insurance) and 280,000 micro-insurance policy holders.

General insurance premiums for the period reached $39.1 million, an increase of nearly 20 percent over Q12020.

Life insurance premiums totalled $44.6 million, up 15.5 percent year-to-date.

Premiums in the micro-insurance category were $1.2 million, a drop of 27 percent from Q12020.

Across the board, the sector saw premium growth of 7.3 percent in 2020 to $271.5 million. Claims paid out to policy holders in 2020 totalled $11.3 million.

The IAC noted that despite 2020 being the year of the pandemic, the sector maintained its focus on protecting its business and individual customers from financial losses and risks.

Youk Chamreounrith, CEO at Forte Insurance Group, said recently that more individuals and business people understand the advantage that insurance provides and that contributes to maintaining sector growth.

Currently, Cambodia has 16 general insurance companies, 11 life insurance companies and five micro-insurance companies.