Grand China Life Insurance and Chief (Cambodia) Commercial Bank Plc have signed a MoU aimed at developing Cambodia's insurance sector.
With the MoU, the companies aim to establish a legal relationship between the companies sanctioned by the relevant regulatory authorities, reported local media Khmer Times. And customers can buy insurance at the bank to ensure the quality.
Chief Bank CEO Dr Soeung Morarith said at the signing ceremony that Grand China Life Insurance has a lot of experience in life insurance and the bank believes in the insurer’s professional team and technology to be successful in Cambodia, reported The Phnom Penh Post. He added that the cooperation will contribute to the development of the Cambodian insurance industry.
Mr Yu Li Qun, CEO, Grand China Life Insurance, said the bank will advise clients on suitable insurance products. He added that “sales is increase every day” as more Cambodians are investing in insurance as they understand the benefits of being insured.
The insurer’s long-term strategy is to transfer life insurance expertise to the Cambodian market and train local experts to support the growing industry
Mr Michael Tee, Deputy CEO, Grand China Life Insurance, said the partnership marked a great milestone in the development journey and that with the bancassurance channel, the partners will be able to provide a better service to Cambodians.
Grand China Life Insurance obtained its license in 2017 and began operations in March 2018. The company has Macao and mainland China investors as well as a technical team composed of professionals with experience from some of the largest insurance companies in China. Chief Bank, which stared its operations in 2013, has three branches in Phnom Penh.
The insurance market in Cambodia has been enjoying strong growth. With national income per capita rising from $288 in 2000 to $1,548 in 2018, the higher disposable income has enabled them to spend more on products and services including insurance, especially with greater awareness and education on the importance of insurance.
Insurance penetration in Cambodia is reported to be under 3%. According to a report from the Insurance Association of Cambodia, there were 12 general insurers and eight life insurers operating in the country as of 2018.
The Ministry of Economy and Finance reported that the sector’s annual growth averaged 35% over the last five years and it is expected to grow at a rate of 32% in gross premiums this year.
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