Grand China Life Insurance Plc has partnered with Chief (Cambodia) Commercial Bank Plc to expand its insurance business in the Kingdom.

Both parties signed a memorandum of understanding (MoU) in Phnom Penh on December 13, aimed at developing Cambodia’s insurance sector which is showing signs of a strong growth – largely encouraged by rising awareness of the importance of life insurance plus the growing disposable income.

“Grand China Life Insurance has a lot of experience in life insurance, so we believe in their professional team and their technology, and it will be successful in our local market.

“Under the MoU, customers can buy insurance at the bank to ensure the quality,” said Chief Bank CEO Dr Soeung Morarith at the signing ceremony.

International life insurance companies are impressed about Cambodia’s insurance sector’s growth potentials.

According to the Ministry of Economy and Finance, the sector’s annual growth averaged 35 per cent over the last five years and it is expected to grow at a rate of 32 per cent in gross premiums this year.

“The income per capita has increased exponentially, allowing a rising number of individuals to increase their purchases of goods and services, including insurance services.

“Cambodia’s national income per capita growth was just $288 in 2000 and increased to $830 in 2010, and reached $1,548 in 2018.

“There is a deeper understanding of the importance of insurance services, more people understand that their possible risks can be transferred to insurance companies at an affordable cost,” Morarith added.

Chief Bank, which stared its operations in 2013, has three branches in Phnom Penh.

Speaking at the same event, Grand China Life Insurance’s CEO, Yu Li Qun said since the company entered the Kingdom two years ago, more Cambodians are investing in insurance as they understand the benefits of being insured.

“We have had a lot of Cambodian customers and our sales are increasing every day, as more people are aware of the benefits of insurance. Buying insurance is a risk-sharing with the company.

“Our company was established in Cambodia in 2018 and we did a thorough research, and we know the needs of the Cambodian people.

“Currently, we have over 2,000 clients and majority of them are Cambodians, and our products [cater for] individuals, families and enterprises. Cambodia’s current insurance sector is similar to China’s insurance [sector].

“As the economy grows, so does the insurance industry. I am confident that in the future the insurance sector will grow faster,” he added

Yu said the company has a long term strategy, that is to transfer life insurance expertise to the Cambodian market and train local experts to support the growing industry.

“Based on the close friendship between Cambodia and China, our company plans to bring expertise from our country to Cambodia and we will help to train Cambodians in this sector.

“In the future, I believe the management of the company and all staff will be Cambodians, and in the next three years the company will train more Cambodians about insurance,” Yu added.