A view of the skyline of Phnom Penh’s central business district, taken from a ferry. Post staff
Slow global economic growth led to Cambodia's insurance industry achieving a gross premium income of nearly $350 million in 2024, a modest increase of just 1.31% over the previous year.
A February 3 report from the Insurance Regulator of Cambodia (IRC) revealed that the Kingdom’s insurance sector generated a total gross premium income of over $346.6 million in 2024, a minor increase on last year’s total of $342.44 million.
The report added that Cambodia currently has 18 general insurance companies, 14 life insurance companies, 7 micro-insurance companies, 1 reinsurance company and 20 insurance brokers. The total assets of the industry are currently valued at $1.1 billion.
Hong Vanak, an economic researcher at the Royal Academy of Cambodia, told The Post on February 4 that the gross premium income in the insurance sector is closely linked to the global economic situation, as well as some internal economic factors.
He explained that the external factors included global economic stagnation, which has led to a decline in foreign investment flows and challenges in launching some businesses. As a result, fewer people are buying insurance, and some local businesses have struggled or ceased renewing insurance policies they had previously held.
He also noted that social services like the National Social Security Fund (NSSF) may have contributed to some people shifting from buying health insurance to opting for services under the NSSF.
Additionally, he believed that public awareness and access to information about insurance services in Cambodia remains limited.
“There was only a slight increase in gross premium income in 2024. Premium incomes will increase when the global and domestic economies improve,” he said.
Youk Chamroeunrith, director of the Forte Group, has previously noted that a series of crises such as the Covid-19 pandemic, geopolitical conflicts between major countries, the Russia-Ukraine war and tensions in the Middle East have caused global economic uncertainty. When the economy falters, cash flows and investments also decline.
He added that the industry has only been in Cambodia for about two decades, while it has existed for hundreds of years in developed countries.
He also noted that there are three main types of insurance in Cambodia: general insurance, life insurance and micro-insurance. The micro-insurance sector is currently performing the best, but because this sector involves smaller amounts of money (some policies might start as low as $1), it cannot immediately boost the overall insurance industry in Cambodia.
