Cambodia Investment Review
Cambodia’s insurance industry continued to chart steady growth in 2024, with gross premiums reaching $357 million, according to figures released during the “Information Sharing Forum on the Current Development of the Insurance Market in Cambodia.” The event, hosted by the Insurance Association of Cambodia (IAC) with support from the Insurance Regulator of Cambodia (IRC) and the Club of Cambodian Journalists (CCJ), highlighted the sector’s expanding role in economic development and social security.
Sustained Expansion and Market Breakdown
The 2024 figure marks a year-on-year increase of 3.4 percent, continuing the industry’s upward momentum from just $36.1 million in 2012—a twelve-year compound annual growth rate of approximately 25 percent. Officials credit the sustained expansion to a combination of improved public awareness, growing trust in insurance services, and the gradual diversification of insurance products.
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The market now includes 40 licensed insurers: 14 life insurers, 18 general insurers, 7 micro-insurers, and 1 reinsurer. In addition, 20 insurance brokers are active in Cambodia’s insurance ecosystem.
Life insurance remains the dominant segment, generating $200.2 million in gross written premiums in 2024. General insurance followed with $148 million, while microinsurance contributed $8.8 million. Since its introduction to Cambodia in 2012, life insurance has seen exponential growth and now represents the largest share of the overall market.
General Insurance and Sector Composition
General insurance continued to see healthy performance, with property insurance emerging as the leading category. In 2024, property coverage accounted for 34.8 percent of general insurance premiums, followed by health insurance at 22.6 percent. Motor insurance made up 16.3 percent, and miscellaneous insurance categories contributed 9.8 percent. Smaller shares were recorded for engineering, marine, aviation, and transport segments.
The expansion in general insurance is attributed to increased urban development, rising awareness of health coverage needs, and a growing motor vehicle market. Meanwhile, microinsurance remains an important contributor to financial inclusion, especially for low-income and rural populations.
The industry’s broader significance is also reflected in the value of claims disbursed. In 2024, insurance companies paid out $115.4 million in claims. Of this, life and health-related payouts accounted for $85.4 million. General insurance claims totaled $30 million, including $21.4 million for property and health-related incidents, $5.1 million for motor insurance, and $3.5 million across other smaller categories.
These figures underscore the sector’s role in enhancing financial resilience for individuals and businesses alike.
National Economic Role and Strategic Alignment
The IRC noted that Cambodia’s insurance sector plays a vital part in both public protection and national economic growth. Bou Chanphirou, Director General of the IRC, said the industry supports Cambodia’s broader social security system by offering a financial safety net to citizens, families, and business owners.
He added that the sector’s development aligns with the government’s Pentagonal Strategy – Phase I, especially the fifth pillar, which emphasizes the strengthening of the banking and non-bank financial sectors.
Under the leadership of Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth, who also chairs the Non-Bank Financial Services Authority, the sector has achieved an average annual market growth rate of around 20 percent over the past decade. In 2024, the total asset base of the industry reached $1.2 billion, reinforcing its growing role within the national economy.
Outlook for Continued Growth
Commenting during the forum, IAC President Huy Vatharo emphasized the dual role of the insurance sector in contributing to both public welfare and economic development. He noted that continued public education and regulatory support will be key to sustaining growth and expanding coverage across the Kingdom.
As Cambodia’s economy evolves and the demand for risk protection rises, the insurance industry is poised to play an increasingly significant role in building financial stability and supporting inclusive development.
