Insurances

The Insurances market in Cambodia is projected to reach a market size (gross written premium) of US$1.93bn in 2024.
Non-Life Insurances dominate the market with a projected market volume of US$1.81bn in 2024.
The average spending per capita in the Insurances market amounts to US$112.80 in 2024.
When compared globally, it is evident that the United States holds the highest nominal value, reaching US$3.8tn in 2024.
The gross written premium is expected to exhibit an annual growth rate (CAGR 2024-2029) of 1.86%, resulting in a market volume of US$2.12bn by 2029.
In global comparison, the United States is expected to generate the highest gross written premium, amounting to US$3.8tn in 2024.
Cambodia's insurance market is experiencing significant growth driven by increasing awareness and demand for insurance products among its population.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Insurances market in Cambodia has been experiencing significant growth and development in recent years. Customer preferences in Cambodia are shifting towards a greater awareness of the importance of insurance coverage, driven by increased disposable income and a growing middle class. Customers are now more inclined to protect their assets and mitigate risks through various insurance products, reflecting a global trend towards financial security and stability. Trends in the market indicate a rising demand for health and life insurance products in Cambodia. As the country's healthcare infrastructure improves and life expectancy increases, individuals are seeking comprehensive coverage to safeguard their well-being and that of their families. Moreover, the emergence of innovative insurance solutions tailored to the local market is attracting a broader customer base, further driving market growth. Local special circumstances, such as the regulatory environment and infrastructure development, play a crucial role in shaping the Insurances market in Cambodia. The government's efforts to enhance regulatory frameworks and promote insurance awareness have created a conducive environment for market expansion. Additionally, the increasing penetration of digital technologies is facilitating greater access to insurance products and services, particularly in rural areas where traditional distribution channels may be limited. Underlying macroeconomic factors, including steady economic growth and a stable political environment, are also contributing to the positive trajectory of the Insurances market in Cambodia. As the country continues to attract foreign investments and diversify its economy, the insurance sector stands to benefit from a larger consumer base and increased demand for risk management solutions. Overall, the Insurances market in Cambodia is poised for further growth and innovation, driven by evolving customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.