Cambodia’s insurance market could also be an upcoming investment hotbed because of three reasons, said a deal maker focused on the Indochinese peninsula. First, as the US dollar is the de facto currency in the country, that allows international insurers to collect and repatriate premium incomes without the difficulty that could have seen in neighbouring Vietnam.
Second, in a country whose economy is one of the fastest growing in the ASEAN region with an estimated 5% growth this year, international heavyweights’ footprints remain very limited. Forte Insurance and Infinity Insurance, two leading insurers in Cambodia, are not controlled by any international big boys, he continued.
Third, there is no foreign ownership cap in the country’s financial services sector, he said. Banking and insurance businesses are combined into one license, meaning that if an entity secures a license, it can provide both services at the same time. However, as it takes time to build a brand, international players interested in venturing to the Cambodian market may find it easier to take over an existing local brand.
Unlike many other Southeast Asian nations, Cambodia’s non-life insurance market is more developed than the life one, as the majority of its citizens still cannot afford the personal life insurance products. Corporate insurance and auto insurance are two of the biggest segments in Cambodia, he said.
2 comments:
Put it this way, insurance policies wise, Cambodia is the only ODD MAN out of the whole of ASEAN as all vehicles and motocycles in circulation are still roaming most of them without adequate insurance. Even in Lao PDR and SR Vietnam all vehicles and motorcycles on the road must have compulsory insurance policies! What is the Khmer government doing???
They don't care about this thing, only about their pockets.
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