Life insurance - Cambodia | Statista Market Forecast

The Life insurance market market in Cambodia is expected to reach a market size (gross written premium) of US$123.20m in 2024.
The average spending per capita in the Life insurance market market is projected to be US$7.20 in the same year.
With an annual growth rate (CAGR 2024-2029) of 4.59%, the gross written premium is anticipated to increase, resulting in a market volume of US$154.30m by 2029.
When compared globally, the United States is predicted to generate the highest gross written premium of US$1.3tn in 2024.
Cambodia's life insurance market is experiencing significant growth as more Cambodians recognize the importance of financial protection.

Definition:

Life insurance is a type of financial product that provides financial security for individuals and their families. In simple terms, when you buy a life insurance policy, you pay regular premiums to the insurance company. In return, if you were to pass away while the policy is in effect, your designated beneficiaries receive a lump sum payment, known as the death benefit, which can help them cover living expenses and financial needs. Life insurance is designed to provide peace of mind and support for loved ones in the event of the policyholder's death. 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.

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, and the share of insureds in the total population for over 50 countries.

Death benefit insurance
Endowment insurance
Disability insurance
Dowry insurance
Birth insurance
Term life insurance
Whole life insurance
Universal life insurance
Burial insurance
Other types of life insurance

Health Insurance
All non-life insurance types
Reinsurance

Over the past decade, the Life insurance market in Cambodia has experienced significant growth and development.

Customer preferences: Cambodian customers are increasingly recognizing the importance of financial security and protection for their families, which has led to a growing demand for life insurance products. With rising disposable incomes and a growing middle class, individuals are more inclined to invest in life insurance as a means of securing their future and that of their loved ones.

Trends in the market: One notable trend in the Cambodian life insurance market is the increasing popularity of unit-linked insurance products, which offer both protection and investment opportunities. This trend is driven by a growing interest in wealth accumulation and financial planning among Cambodian consumers. Additionally, insurance companies in Cambodia are expanding their product offerings to cater to diverse customer needs, such as health insurance riders and education savings plans.

Local special circumstances: The regulatory environment in Cambodia has been evolving to support the growth of the life insurance market. The government has been implementing reforms to enhance transparency, consumer protection, and overall market stability. This has instilled greater confidence among consumers and encouraged more people to consider life insurance as a viable financial tool.

Underlying macroeconomic factors: The economic growth in Cambodia, coupled with a stable political environment, has contributed to the positive trajectory of the life insurance market. As the country continues to develop and urbanize, there is a greater awareness of the need for comprehensive financial planning, including life insurance coverage. Moreover, the young demographic profile of Cambodia presents a significant opportunity for insurance companies to tap into a growing market of potential customers.

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.

The biggest life insurance market globally is the United States, and it was almost twice as large as the second-biggest market, China. People take out life insurance to financially support their loved ones after their death. The payout is often used to cover funeral expenses, replace income earned by the deceased, or pay for children's education. It can be paid out in a lump sum or as an annuity, which is paid in regular installments for either a specified time or for the lifetime of the beneficiary. In 2022, the United States was the leading life insurance premium writing country, with a total value of life direct premiums written exceeding 600 billion U.S. dollars. The second and third-largest life insurance markets were China and the United Kingdom, respectively.