News Asia03 Feb 2025

Cambodia:Insurance industry records 3.5% growth in 2024

| 03 Feb 2025

The Cambodian insurance industry registered a gross premium income of $356.4m in 2024, an increase of 3.5% from $344.2m during 2023. The new figures are a part of a report released by the Insurance Regulator of Cambodia (IRC) in January 2025.

According to a report by Xinhua, the IRC report said the growth was driven by 18 general insurers, 14 life insurers, seven micro-insurance companies and one reinsurance firm.

The incurred claims in 2024 totalled around $79.7m as compared to $67m an year earlier in 2023. This translates into an increase of 18.9%. The total assets of the insurance industry in Vietnam are over $1bn.

IRC director general Bou Chanphirou said the country’s insurance sector plays a vital role in supporting the social security system and contributing to Vietnam’s national economic development. According to the regulator the kingdom’s insurance penetration in 2023 was 1.16% of the GDP in 2023. The insurance density in 2023 was at $21 per person.

Mr Chanphirou said these two indicators demonstrate that the Cambodian insurance market has significant potential for further growth in the future.

Cambodia’s geographical and climatic conditions, however, make it highly susceptible to natural disasters such as floods, droughts, and typhoons. These recurring calamities devastate livelihoods, agriculture, infrastructure, and the broader economy. Despite the scale of impact, the mechanisms to finance disaster response and recovery remain underdeveloped, leaving the nation heavily reliant on external assistance.

Moreover, private sector involvement is minimal, with low penetration of insurance products for disaster-related risks. The lack of robust data systems further hampers accurate risk assessments and pricing, limiting the effectiveness of existing strategies.

Raising awareness among communities about the importance of disaster insurance products and financial preparedness is essential. Cambodia needs to adopt global best practices, particularly from neighbouring ASEAN countries, to refine its disaster risk financing strategies.

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