Chhay Rattanak, GIAC Chairman, was quoted by the Post as saying that the premiums from firs insurance contributed 26 percent, motor and miscellaneous insurance 25 percent each, and medical and health insurance, 16 percent to revenues.

The sum for claims in the first five months of 2010 was USD2.34 million, down 25 percent in comparison with the same period last year.

In General, the trend for buying premium insurance has been increasing. The upward trend is back on track, especially engineering and medical insurance, said Rattanak. He forecast that the industry would grow by between 10 to 15 percent this year.

At the present, there are six insurances companies operating in Cambodia, including Forte, CAMINCO, Asia, Campubank Lonpac, Infinity, and Cambodia-Vietnam Insurance. The insurance industry made total premium revenue of USD20.07 million last year.

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Chhay Rattanak, chairman of the General Insurance Association of Cambodia (GIAC), told the Post on Tuesday that, according to figures provided by all of the country’s insurance firms, the industry’s premium revenues grew to US$3.8 million in January and February, up more than $600,000 from the same period last year.

Premium revenues grew 11 percent for insurance on automobiles, 10 percent for fire and 16 percent for personal accident, Chhay Rattanak said. Revenues dropped 22 percent for maritime insurance and 48 percent for worker compensation.

“We saw good recovery in almost all businesses,” he said. “And there have not been any dramatic changes in claims trends in the first two months.”

Chhay Rattanak estimated that for the first quarter, the market would grow up to 20 percent, with 20 percent growth to continue throughout the year.

Larger insurers said Tuesday they had seen double-digit climbs in quarterly premium revenue.

“We have increased by 20 percent in premium revenues so far,” said David W Carter, CEO of Infinity General Insurance Plc, declining to disclose premium levels. “This is in line with our budget forecast, and we expect to achieve this trend for the rest of the year.”

Growth came from current clients purchasing more coverage as well as new clients, he said. More revenue came from construction premiums, as a number of projects got underway.

“We are seeing an overall improvement in business conditions and a greater acceptance in the market of Infinity as a strong and reputable insurer,” he said. “This would take us to second position in the market, out of a field of six players, by the end of 2010.”

Forte Insurance (Cambodia) Plc, the Kingdom’s largest insurer in terms of premium revenues, saw growth of around 20 percent the first quarter.

“The growth came from all businesses – food processing, hotels, construction, autos – except garments,” Forte’s general manager, Youk
Chamroeunrith, said. “Premium revenues from the garment sector slightly dropped, as not many new factories came in and some existing ones scaled down or closed.”

Cambodian National Insurance Company (CAMINCO) reported growth in premium revenues of 40 percent in the first quarter, to $551,000.

Main premium revenue increases came from insurance for vehicles and home and garment industry fire, CAMINCO Managing Director Duong Vibol said, adding that claims increased as well.

“There were a lot of claims in [the first quarter], especially accidents of passenger buses,” he said.

Cambodia has six insurance companies, with one reinsurer supporting the market.

Total premium revenues for 2009 were $20.07 million, a 2.86 percent drop from 2008.

Source: The Phnom Penh Post

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Chhay Rattanak, chairman of the General Insurance Association of Cambodia (GIAC), said that total premium revenues for 2009 fell to US$20.07 million.

“The global financial crisis is impacting on all sectors, including the insurance industry,” he said.

Nevertheless, the drop is a marked improvement on figures for the first 10 months of last year, which saw an 11.5 percent fall on premiums – to $14.16 million from $16 million compared with the same period in 2008.

“The results from December last year are better because of a new player [Cambodia-Vietnam Insurance Co], which brought premiums from risk regarding aviation and others into the market.”

He forecast that the industry is expected to expand by at least 10 percent in 2010.

“The increase is expected to follow an expected economic recovery in Cambodia,” he said, adding that new companies are likely to boost the sector.

Cambodia has six insurance companies: Forte Insurance, CAMINCO, Asia Insurance, Campubank Lonpac, Infinity Insurance, and new arrival Cambodia-Vietnam Insurance. There is also one domestic reinsurance company.

Cao Minh Son, chief executive officer of Cambodia Vietnam Insurance Co Plc (CVI), wrote in an e-mail Thursday that from mid-November until the end of the year, CVI earned around $160,000 in premiums for aviation, property, third-party liability, personal accident and motor insurance.

“This year, we are planning for a minimum target of $1 million,” he said.

Infinity Insurance Chief Executive Officer David Carter said that, despite the drop in the industry as a whole, his company saw growth of about 20 percent to slightly over $4 million last year from $3.277 million in 2008, crediting new business growth and the retention of existing customers.

Government statistics on the insurance industry will be completed in March. But Mey Vann, director of the Finance Ministry’s financial industry department, said last week that GIAC’s figures were accurate.

GIAC statistics for the amount of claims made in 2009 are not yet available. But Chhany Rattanak said that in the first 10 months of 2009, $11 million was paid out – almost 400 percent higher than the $3 million paid out in 2008. Of that, $9 million was paid in one claim by Forte Insurance to Suntex Pte Ltd for a fire that destroyed its garment factory in Phnom Penh’s Dangkor district in April last year.

Domestic insurance firms – not including Asia Insurance, which declined to comment, and Cambodia-Vietnam Insurance Co, which had only just started operations – said in October that they had received six claims for damage caused by Typhoon Ketsana, which struck mostly in the northeast of the Kingdom at the end of September.

Source: The Phnom Penh Post

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Despite there was the global financial crisis, Cambodia’s premium insurance revenues increased 18 percent in 2008 – from US$17.5 million in 2007 up to US$20.5 million in 2008. In addition, Cambodian people have started understanding the advantage of buying personal insurance and car insurance, according to In Meatra, Head of the Financial Industry Department’s Insurance Division at the Ministry of Finance.

At the present, there are five insurance companies in Cambodia – Forte Insurance, Caminco, Asia Insurance, Campubank Lonpac and Infinity Insurance. In addition, two new companies are expected to enter the market this year – one local firm and another from Malaysia.

Although, Cambodia’s insurance market is very small in comparison with other countries because Cambodians have a little knowledge about this sector and cannot afford it as well. It is estimated that there is one and two percent amongst Cambodia’s 14 million have possibility to buy insurance.

“We know that our customers are looking to save on their expenses,” said David Carter, CEO of Infinity Insurance. “In some cases, they are cutting back the level of insurance they buy,” reported VOA Khmer.

“What can happen in a financially difficult time such as this is customers may not be careful in management of their business,” Carter said,

While the number of insurance customers is increasing- premium payments increased from $8 million in 2003 to $20 million in 2008 – only about one percent of Cambodians have it.

David W Carter, chief executive officer of Infinity Insurance was quoted by the Post as saying that he expects the insurance sector to grow this year, despite the crisis.

“We anticipate the insurance market to outpace Cambodia’s GDP growth over the next year. So, if GDP grows by five percent, we expect the insurance market premiums will increase by 10 percent minimum,” said Carter.

“Generally, in less developed countries the proportion of people buying insurance is very low compared to the developed world,” Youk Chamroeunrith, director of Forte Insurance, Cambodia’s largest insurer, quoted by the Post as saying. He added that “Cambodians are not interested in buying insurance, and they have less knowledge about the importance of buying insurance.”

In Cambodia, life insurance is not offered by insurance companies but other service offers are insurance on automobile, property, marine cargo, personal accident and healthcares, engineering and construction and other eventualities.

The fact that people who live on less than one dollar per day cannot afford insurance.

The VOA Khmer quoted Mey Vann, Director of Financial Industry at the Ministry of Economics, as saying that his ministry is working to educate people and reform some of the insurance law, including all vehicles have insurance.

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In Meatra, Head of the Financial Industry Department’s Insurance Division at the Ministry of Finance, said that the premium insurance revenues west up to 20.5 million US dollars in 2008 from $17.5 million in 2007. It increased up to 18 percent.

At the present, Cambodia has only five insurance companies- Forte Insurance, Caminco, Asia Insurance, Campubank Lonpac and Infinity Insurance. It is expected two companies to enter the market this year- one local company and other from Malaysia. Caminco Insurance – State-owned company- also plan to sell its 75 percent shares owned by the government, and then a joint venture may be formed with a Thai Insurance company and local investor.

David W Carter, chief executive officer of Infinity Insurance, was quoted by the Phnom Penh Post as saying that he expects the insurance sector to grow this year, despite the crisis. “We anticipate the insurance market to outpace Cambodia’s GDP growth over the next year. So, if GDP grows by five percent, we expect the insurance market premiums will increase by 10 percent minimum.” He added that “this is mainly due to rising demand, as more awareness towards the advantages of buying insurance grows.” He said that the discovery of oil and gas off the coast could dramatically boost the sector.

Cambodian people still is unaware of the advantages to buying insurance; most of insurance buyers are foreign investors, international non-governmental organizations. Therefore, in general, Cambodia’s insurance sector is facing the dilemma of small market size to attract new entrants.

Youk Chamroeunrith, general manager and director at Forte Insurance, said that we need to have more foreign investment first to drive premium growth, adding that the global financial crisis has put pressure on insurance growth because of declining foreign investment. He added that the premium growth already slowed down by around 2 percent in the past year.

Lack of a legislative framework and a low level of insurance awareness in the country are the biggest hurdles for insurance development in Cambodia, said Chamroeunrith.

He said that most insurance buyers are foreign investors, adding that Forte’s premium income was $8.8 million, for a 50.31 percent market share in 2007. Revenues were up about 15 percent in 2008, reported the Phnom Penh Post.

The life insurance as an important financial sector as its development can ultimately encourage public savings and drive productive investment. In the insurance sector, Cambodia has some way to go.

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