The total gross premium in the insurance industry rose 30 percent last year, mostly driven by life insurance sales, the Insurance Association of Cambodia (IAC) said in its latest report.
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Gross premium reached $196.4 million last year, compared with $151.6 million the previous year. Of the total, sales from general insurance grew 15 percent with life insurance growing 50.6 percent.
Both general and life insurance in Cambodia continue to grow year on year, the report noted.
As of 2018, there are 12 general insurance companies and eight life insurance companies operating in the country. The IAC reported an annual compound average growth rate of 15.7 percent for general insurance and 120.55 percent for life insurance between 2013 and 2018.
IAC Chairman Huy Vatharo, said that the growth of general insurance was mainly driven by automobile insurance sector (26.3 percent), property (15.2 percent), and personal accident and medical (12.1 percent). He said $22.3 million in general insurance claims were paid out in 2018.
Mr Vatharo noted that sales of general and micro insurance to protect businesses and individuals from financial loss due to risks, also helped to propel the industry’s growth.
“With growing awareness among Cambodians on the benefits of insurance, I have no doubt that the industry will still achieve strong growth in 2019 and in the years to come.” he said.
On the prospects of life insurance, Robert Elliott, Manulife Cambodia chief executive officer and general manager, said more and more Cambodians are taking up life insurance policies to secure the financial future of their families.
“In 2018 alone the life insurance sector paid out over $2.3 million in claims to families of policyholders in Cambodia, against $1 million paid out in 2017,” Mr Elliott said. “I’m very excited to witness the trust and support that Cambodian families have put into life insurance although the industry just started off in 2012.”