In 2023, Cambodia’s insurance sector experienced a subdued rate of expansion, recording a modest 3% year-on-year growth in premiums, reaching $342 million compared to $331.8 million the previous year.
According to a report from The Phnom Penh Post, this slowdown is primarily attributed to the prevailing economic downturn globally and regionally.
A recent report from the Insurance Regulator of Cambodia (IRC) revealed that the country ended the year with a total of 41 insurance entities. Among these, 18 are general insurers, 15 specialize in life insurance, seven operate as micro-insurance providers, and one functions as a reinsurance firm. The sector boasts total assets nearing $1 billion.
In terms of claims disbursed, insurance companies paid out a total of $60.8 million in 2023, marking a significant 30% increase from the $46.6 million recorded in 2022.
Bou Chanphiru, the director-general of IRC, highlighted Cambodia’s political stability and consistent economic growth over the past two decades as key factors driving the sector’s remarkable expansion. He underscored the sector’s vital role in enhancing social security and the national economy.
However, despite the sector’s progress, Chanphiru pointed out persistent challenges, including low insurance contribution rates and density. In 2023, insurance contributions represented only 1.14% of the economy, with an average density of $20.72 per capita.
Youk Chamroeunrith, group CEO of Forte Group, acknowledged the industry’s sluggish growth, attributing it to the broader economic slowdown affecting the region and beyond.
Chamroeunrith noted a modest 5% increase in Forte General, while Forte Life experienced a slight decline, partly due to minimal increments in bank loans, given their collaboration with banks in extending insurance services to borrowers.
Analyzing 2022’s performance, the insurance sector witnessed gross written premiums (GWP) totaling $331.8 million, a 10.68% rise from the previous year, according to the IRC. Noteworthy increases were observed across life, general, and micro insurance premiums, reaching $193.81 million, $132.34 million, and $5.716 million, respectively.
While the sector demonstrates resilience amid economic challenges, sustaining growth requires addressing inherent obstacles and fostering broader public engagement with insurance products and services.
