Insurance Sector Still Contributes Just 1.1% to Cambodia’s Economy Despite Market Growth

PHNOM PENH, May 20, 2026 (KPT) — The insurance industry continues to expand but its contribution to the economy remains modest at just 1.11 percent of GDP in 2025, officials said Wednesday, underscoring challenges in public awareness and trust.

Bou Chanphirou, director general of the Insurance Regulator of Cambodia, said the sector’s share is still low compared to neighboring countries despite notable growth in recent years. He cited limited public understanding of insurance benefits and lingering doubts over service quality as key obstacles.

“Many people still do not fully understand the value and protection that insurance services can provide,” Chanphirou said, adding that concerns over reliability continue to affect consumer confidence.

To address these issues, the regulator has signed a cooperation agreement with the Australian and New Zealand Institute of Insurance and Finance to strengthen professional training and modernization. The partnership will focus on knowledge exchange and capacity building to raise standards to international levels.

Chanphirou said improving service quality is vital to build trust and encourage wider use of insurance. Cambodia’s market reached about US$367 million in premiums in 2025, with assets exceeding US$1.2 billion and 39 active companies, including 18 general insurers, 13 life firms, seven microinsurance providers and one reinsurer.