A Roadmap to Strengthen Trust and Stability
Cambodia is taking a decisive step to modernize its insurance industry with the launch of the Cambodia Strategic Development Plan for Insurance Sector 2025 to 2030. Unveiled by the Insurance Regulator of Cambodia, the plan is designed to reinforce financial stability, expand public confidence, and build a stronger foundation for long term growth. Speaking at the dissemination seminar in Phnom Penh, Bou Chanphirou, Director General of IRC, highlighted the sector’s growing importance in today’s uncertain global environment.
He stated, “The insurance sector plays an important role as an effective mechanism in addressing the financial burden when risks arise, aiming to strengthen the social safety net and promote resilience in society.”
The event brought together key stakeholders from ministries, institutions under the Non Bank Financial Services Authority, and insurance related organizations, reflecting a coordinated national effort to push the sector forward.
Building Awareness and Industry Participation
A core objective of the seminar was to raise awareness and ensure that both stakeholders and the public understand the strategic direction of the insurance sector. The development plan serves as a comprehensive roadmap, guiding reforms and encouraging broader participation across the industry. Chanphirou called on all relevant players to actively engage in implementing the plan, emphasizing its role in supporting socio economic development while strengthening social protection systems.
He further noted, “As the world is facing high uncertainty, the insurance sector plays an increasingly important role in responding to unforeseen risks,” reinforcing the need for a resilient and inclusive insurance ecosystem.
Strong Growth Signals Industry Momentum
Cambodia’s insurance sector has demonstrated consistent and impressive growth over the past five years, reflecting rising demand and improved market confidence. The number of insurance companies has expanded significantly, showing increased investment and diversification within the industry.
- 83 companies in 2021
- 112 companies in 2025 including 39 insurance companies, 64 intermediary companies, and 9 support companies
At the same time, the market size has grown steadily, with gross insurance premiums rising from around 300 million US dollars in 2021 to more than 367 million US dollars in 2025. This represents an average annual growth rate of over 6 percent, highlighting the sector’s resilience and upward trajectory.
Expanding Assets and Economic Contribution
The financial strength of the insurance industry is also evident in its growing asset base and contribution to the national economy. Insurance assets have increased from over 850 million US dollars in 2021 to nearly 1.3 billion US dollars in 2025, signaling improved capital capacity and operational scale. In 2025, the sector contributes about 1.11 percent to the economy, with an insurance density of 20.95 US dollars per person.
Chanphirou emphasized the broader impact of this progress, stating, “The growth of the insurance sector not only reflects the growth of the insurance market, but also reflects improvements in risk management, strengthening the social safety net, and enhancing socio economic resilience,” highlighting how the industry supports both individuals and the wider economy.
Vision for 2030 and Beyond
Looking ahead, the Cambodia Insurance Sector Development Strategic Plan sets ambitious but achievable targets. By 2030, the sector is expected to double its contribution to the economy to around 2 percent, while increasing insurance density to approximately 45 US dollars per person. These goals reflect a clear vision to deepen market penetration, improve accessibility, and position insurance as a critical pillar of Cambodia’s financial system. With strong policy direction and continued stakeholder collaboration, the sector is well placed to play a larger role in safeguarding economic progress.
Conclusion
Cambodia’s new insurance development plan marks a significant milestone in building a more resilient and inclusive financial system. With steady market growth, rising assets, and clear long term targets, the insurance sector is evolving into a key driver of socio economic stability. As awareness expands and participation increases, the industry is set to strengthen its role in protecting individuals, supporting businesses, and contributing to Cambodia’s sustainable development journey.