Two life insurers are launching in Cambodia in close succession, entering a very young market that is growing rapidly and becoming more competitive.
Bangkok Life Assurance (Cambodia) Plc began its operations on Tuesday, while Asia-wide insurer
AIA will open its doors on Friday. The entry of these two insurers will bring the total number of life insurance companies in Cambodia to six.
Life insurance is a new product in the Cambodian market, having been offered for the first time in 2012. Starting from a low base, the sector’s growth has been strong, expanding by 95% in 2016 alone, selling 51,000 new policies, according to data from the Insurance Association of Cambodia (IAC) annual report.
Methit Mukdasiri, director of Bangkok Life Assurance (Cambodia) spoke at the company’s launch and said that Cambodia was the company’s first foreign market, and that its youthful demographics were a positive factor for a promising insurance venture.
“The market is still growing and it is not too late to enter because it is still very young,” he was quoted as saying by the Phnom Penh Post. “Life insurance is a long-term business. It is like running a marathon and we need to have a good plan and strategy to grow.”
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