Cambodia Investment Review
Cambodia’s life insurance industry expanded at a single-digit pace in the first half of 2025, reflecting a moderation compared to the rapid pre-COVID growth trajectory. Within this environment, Forte Life Assurance marked a major milestone, turning profitable [amount was not disclosed] since entering the market in 2019.
According to Forte, the insurer now protects more than 800,000 Cambodians—around 60% of the market—out of a nationwide total of 1.3 million lives covered by life insurance products.
“Turning profitable is a meaningful break from the early-stage strategic investment phase.” said Prou Sythan, CEO of Forte Life Assurance, speaking to Cambodia Investment Review. “It reflects not just our scale, but also the maturity of the sector, which has shown resilience even in more challenging conditions.”
Slower Short-Term Growth, Cautious H2 Outlook
Market liquidity in Cambodia has tightened in recent months, with household deposits in banks outpacing new inflows into long-term insurance products. Prou Sythan noted that this caution is particularly visible in western and northern provinces, where consumer spending power is more vulnerable to cross-border trade and border tensions and uneven tourism flows.
“While families are prioritizing savings and financial safety measures like life insurance, they also want to see stronger signals from tourism, real estate, retail sector recovery and infrastructure before committing to new policies,” he explained.
Despite these headwinds, Forte expects the second half of 2025 to benefit from seasonal and macroeconomic tailwinds. Prou Sythan highlighted a mix of positive factors including the U.S. tariff reduction to 19%, the launch of Cambodia’s new airport, the return of migrant workers, and peak tourism flows—all of which could improve investor and consumer confidence.
“We are cautiously optimistic,” he said. “Demand for simple, affordable protection remains strong, and that will underpin stable growth through the rest of the year.”
Long-Term Prospects: Room to Triple in Size
Looking beyond 2025, Cambodia’s life insurance penetration remains below 1% of GDP, leaving substantial headroom for expansion. Prou Sythan told Cambodia Investment Review that, based on historical growth and regional comparisons, the sector could double or even triple in size over the next decade.
“Awareness is rising each year, but adoption is still early. As financial literacy improves and households prioritize education funds, retirement planning, and protection, we believe the market will expand significantly,” he said.
Product innovation is expected to remain simple and accessible, with term and limited-pay protection, credit life embedded in lending, and education savings plans playing central roles. Distribution through banks, MFIs, employers, agency, brokers and digital wallets is expected to drive adoption.
“Much as Cambodia has leapfrogged in digital payments, life insurance can leapfrog via embedded and partnership models—meeting customers where they already are and bringing protection into everyday financial journeys,” the CEO explained.
Regulation and Bancassurance
The Insurance Regulator of Cambodia (IRC) and the National Bank of Cambodia (NBC) have taken steps to strengthen bancassurance, which accounted for about 70% of life insurance premiums in H1 2025. Clearer rules on exclusivity, reporting, and consumer protection have improved transparency and stabilized partnerships between insurers and banks.
“Regulators have struck the right balance—firm on consumer outcomes, but pragmatic during challenging periods,” he said. “That balance helps insurers continue serving customers reliably and supports long-term growth and stability.”
Raising Awareness Amid Economic Pressures
Low financial literacy remains a structural challenge. Forte Life is focusing on practical, affordable pathways to coverage by integrating insurance into existing financial touchpoints and across customer segments of our partners..
“We work directly with banks, MFIs, employers, and affinity partners to bring insurance into everyday financial journeys,” Prou Sythan told Cambodia Investment Review. “But awareness is not the insurers’ job alone—it requires regulators, financial institutions, and the media to collectively lift financial literacy.”
As economic headwinds shape household spending in 2025, Forte believes the value of insurance as a safety net is becoming more tangible for families. “Uncertain times actually highlight the need for protection,” the CEO added. “Together, we can protect more families and strengthen Cambodia’s resilience through cycles.”
