The premium income of Cambodia’s insurance industry in 2021 will be nearly US$300 million, a year-on-year increase of 9%. Cambodia’s Insurance Continues to Grow while Its Penetration is less than 1%. According to the disclosure by the director of insurance industry supervision, despite the impact of the new crown pneumonia epidemic, the Cambodian insurance industry continues to grow. The stable and rapid growth of Cambodia’s economy, coupled with the demand for life and medical insurance products, are the main factors driving the development of the insurance industry.
At present, there are 18 miscellaneous insurance companies and 14 life insurance companies in Cambodia. The main insurance products in Cambodia are life insurance, general insurance and microinsurance. In 2021, the premium income of Cambodia’s insurance industry will be nearly US$300 million, an increase of 9% from US$271.5 million in 2020. The insurance industry will pay out $11.3 million in claims in 2021.
Cambodia’s non-banking financial services regulator has adopted the draft “Cambodia Insurance Industry Development Strategic Plan (2021-2030)”, aiming to promote the rapid growth of the insurance industry within 10 years. The Insurance Regulatory Authority under the Ministry of Finance and Economics is preparing a draft of the “Cambodia Insurance Industry Development Strategic Plan (2021-2030)” to further expand the role of the insurance sector in Cambodia’s economic development. Cambodia intends to increase the insurance penetration rate (Insurance Penetration) from less than 1% to 5.5% in 2030; and the insurance density (Insurance Density) from the existing US$17.26 to US$135.
It will also serve as a roadmap for the development of the insurance industry in the next 10 years, identify priority development areas, and further improve the functions of the Insurance Authority. Cambodia officially passed the Insurance Industry Law in 2000 to regulate the development of the insurance industry and attract more investment in this field, and it was not until 2012 that the first life insurance company appeared. Compared with other ASEAN member states, Cambodia’s insurance industry is still in a “nascent” state, with an estimated annual growth rate of 25% over the next 10 years.
According to data released by the Cambodia Insurance Regulatory Authority, in 2020, the GDP of Cambodia’s domestic insurance industry is about 300 million US dollars, of which life insurance premium income is about 150 million US dollars, and miscellaneous insurance premium income is 100 million US dollars. Despite the COVID-19 pandemic, the GDP of Cambodia’s insurance industry continued to grow in 2020, with life insurance premium income remaining at the level of the previous year.
In conclusion, the contribution of the insurance industry to Cambodia’s economy and society is still very limited, with an insurance penetration rate of only 1% and an insurance density of only US$17.26.
