Cambodian Insurance Policies Drop by Half Despite Rising Premiums

The Cambodian insurance sector has experienced a dramatic contraction in the volume of active contracts, despite recording a marginal growth in its overall premium collections. According to the latest monthly statistical report released by the Insurance Regulator of Cambodia, the total number of insurance policies across the Southeast Asian nation plummeted by 50.97 per cent year-on-year. The aggregate figures reveal that the total pool of active policies shrank to 107,366, a sharp decline from the 218,998 contracts documented during the identical period twelve months prior.

This pronounced contraction was evident across both primary sectors of the market. General insurance contracts bore the brunt of the downturn, falling by 63.51 per cent to rest at 24,573 active policies. Meanwhile, the life insurance segment proved slightly more resilient but still suffered a significant setback, with policies dropping by 45.41 per cent to a total of 82,793.

Premium Revenues Stagnate Amid Soaring Capital Risk

Despite the massive reduction in customer accounts, financial inflows remained surprisingly stable. Cambodia’s insurance market managed to accumulate gross premiums of $28.49m, representing a modest increase of 1.61 per cent against the $28.04m generated twelve months earlier. A closer inspection of these revenues indicates a uniform, albeit sluggish, upward trend. Life insurance premiums rose by 1.62 per cent to reach $17.44m, whilst general insurance premiums posted a nearly identical 1.61 per cent increase to close at $11.05m.

Market Divergence Alert: The simultaneous decline in policy numbers and rise in gross premiums points toward a shifting marketplace, where underwriters are increasingly focusing on higher-value corporate clients rather than mass retail portfolios.

This structural shift towards premium-heavy clients is clearly illustrated by the total sum insured, which indicates the maximum liability carried by the nation’s underwriters. The total sum insured jumped by 16.45 per cent to hit $11.32b, up from the previous year’s metric of $9.72b. General insurance liabilities expanded by 12.96 per cent to secure a dominant $9.07b share of the total capital risk. Simultaneously, the life insurance sector witnessed an even more aggressive surge, with the sum insured expanding by 33.02 per cent to reach $2.25b.

Claims Adjustments and Portfolio Breakdown

Total payouts from underwriters shifted only slightly, with gross claims incurred across the industry edging up by a minor 0.94 per cent to settle at $6.58m. However, the internal dynamics of these claims varied significantly by product category. General insurance claims faced upward pressure, increasing by 3.50 per cent to $4.87m. Conversely, life insurance claims offered some relief to corporate balance sheets, dropping by 5.71 per cent to rest at $1.71m.

Within the non-life sector, commercial property coverage emerged as the single largest product line, accounting for a commanding 36.20 per cent of all general insurance premiums. Vehicle underwriting secured the second-largest share at 19.89 per cent, closely followed by health insurance policies at 19.62 per cent. Personal accident coverage maintained a minor foothold at 7.87 per cent, whilst transit-related transportation risks and specialised engineering projects made up 6.84 per cent and 3.82 per cent respectively. Miscellaneous products combined to constitute 5.67 per cent of the market. In contrast, the agricultural sector languished at a negligible 0.08 per cent, and livestock policies registered no meaningful market movement whatsoever.