The insurance industry of Cambodia has achieved record growth figures for 2016, according to a report by the Insurance Association of Cambodia (IAC).
With total gross premiums worth US$113.6 million as of end-2016, the Cambodian insurance sector grew by 35.6%, up from US$83.7 million in 2015.
The report said: “Insurance in Cambodia continues to grow year-on-year and the strong overall growth was due to increased coverage in the following areas: property and fire insurance, medical insurance, engineering insurance, personal accident insurance, and marine, aviation and transport insurance.”
Huy Vatharo, IAC chairman, praised the results and was positive about the sector’s growth.
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“The growth of the insurance industry in Cambodia defines a better future for the Cambodian economy as the risks involved, as well as financial strains that could befall Cambodian families and businesses, are transferred to the insurance companies instead,” he said.
Youk Chamroeunrith, director general of Forte Insurance which leads the market with a 47% share, pointed out some areas for improvement, such as the country’s low insurance penetration rate.
According to Chamroeunrith, insurance in the engineering, medical, and real estate sectors contributed the most to the growth, but insurance amounts to only 0.35% of the country’s GDP, giving Cambodia the lowest insurance penetration rate in the ASEAN.
By contrast, in Malaysia, life premiums make up 3.3% of GDP, while non-life premiums account for 1.8%. In Singapore, life premiums are at 4.3% of GDP, with non-life premiums at 1.5%.
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