Insurance revenues to rise 20% for the year

[PHNOM PENH POST]

Premium revenues across Cambodia’s insurance industry are expected to increase 20 per cent year-on-year in 2011, Mey Vann, director of the Department of Industry and Finance at the Ministry of Economy and Finance, predicted yesterday.

The Kingdom’s six insurance firms are set to accrue a total of US$30 million in premium revenue throughout 2011, up from last year’s figure of $25 million, he said at the launch of a reinsurance supervision seminar yesterday.

“In 2011, Cambodia’s health insurance industry has increased because of the Kingdom’s positive economic growth and the growing number of people beginning to understand the benefits insurance offers,” Mey Vann said.

He said that he expects to see consistent 20 per cent year-on-year growth for the foreseeable future, as the industry continues to expand from its low base.

“The goal of the insurance industry is to reduce risk and protect all business and economic activity through transferring risk to insurers and re-insurers by paying regular premiums,” he said.

Mey Vann added that the premium revenue collected from the insurance industry can be used to develop the financial sector – creating additional jobs and boosting the economy.

A number of industry experts also agreed that the insurance sector has grown steadily throughout 2011.

Infinity Insurance CEO David W Carter yesterday told the Post that the rise in revenue was a result of growth in a number of specific markets.

“Infinity’s premium revenue increase came mainly from a growth in real estate, healthcare and motor insurance,” he said, adding that the company had predicted revenue growth of about 15 to 20 per cent in 2011.

However, Forte Insurance general manager Youk Chamreounrith said yesterday that the firm’s premium revenues had already soared 29 per cent year-on-year.

“Many Cambodians have now started to understand how insurance works, and the benefits of having it.”

He said that the firm’s revenues derived primarily from construction, factory fire and motor insurance.  

Despite the strong year so far, Youk Chamreounrith said he expected Forte Insurance’s premium revenues for 2011 to level off at 25 per cent growth year-on-year.

The six insurance companies currently operating in the Kingdom are Infinity, Forte, CAMINCO, Asia Insurance, Campubank Lonpac and Cambodia-Vietnam Insurance.