Revenue of insurance sector rises 7.3% to $271M in 2020

The insurance sector in Cambodia earned $ 271.5 million in premiums last year, increasing by 7.31 per cent from $ 253 million in 2019, tied as most of the service sector showed damaging signs in 2020, the Insurance Association of Cambodia ( IAC ) reported on May 12 .
Of that, cosmopolitan and life indemnity premiums came to $ 113.8 and $ 152.3 million, surging by 10.5 and 6.6 per penny year-on-year, and accounting for 41.9 and 56.1 per cent of the full .

Micro-insurance premiums were to the tune of $ 5.4 million, polish by 24.6 per cent year-on-year, and accounted for good two per penny of the sum, IAC said .
Without providing concrete figures, it listed fire, mastermind, health, vehicle and “ other accidents ” as celebrated sub-segments of general indemnity that besides saw year-on-year gains in premiums final year .
The policy sector paid out around $ 37 million in claims last year, up by five per cent year-on-year, it said. General, life and micro indemnity accounted for $ 29.1, $ 6.9 and $ 0.9 million .
IAC president Huy Vatharo told The Post on May 13 that increased awareness of the importance of insurance among companies and the general cambodian population enabled the market to grow amid the Covid-19 pandemic, even if not american samoa fast as in previous years .
He added that positivist momentum in the sector was further fuelled by the Ministry of Economy and Finance ‘s deputation to create a favorable commercialize environment and legal framework that provides greater confidence among policyholders .
“ The indemnity sector in Cambodia is growing significantly, which is reflected in the greater levels of awareness about the benefits of policy, and increased believe from customers from year to year, ” he said.

With an vent of doubt attend over the Kingdom as it grapples with the February 20 community outbreak of the fresh coronavirus, Vatharo said the future of the insurance market remains in a haze .
distillery, he voiced optimism that growth in diligence would remain in positive territory, albeit lower than in 2020 .
According to Vatharo, the insurance sector in Cambodia has grown by an average of about 30 per penny each class over the past two decades .
Youk Chamroeunrith, Group CEO of Forte Insurance, said the company logged a closely 10 per cent increase in premiums final year, down from 13 per cent in 2019, with vehicle and health insurance occupying the lion ‘s plowshare .
He said a better level of cognition of insurance products and position management amid Covid-19 were the main drivers for keeping the market plus .
Noting that the pandemic did not leave much of an impact on the indemnity market last year or in the beginning stern of 2021, Chamroeunrith signalled concern about the second quarter over the latest outbreak of the virus.

But even in a gloomy scenario, convulsion in the policy sector would likely have ailment effect on greater home economic development .
As Chamroeunrith noted, policy spending accounts for just 0.4 per penny of the Kingdom ‘s crude domestic product ( GDP ), whereas that rate is between six and seven per cent in neighbouring countries .
IAC said it presently comprises 31 policy companies – 16 general insurers, 11 animation insurers, five micro-insurers and one reinsurer .

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