AIA Life Insurance will launch operations in Cambodia following regulatory approval.
The firm expects to launch operations in the rapidly expanding market this year as it received an insurance licence from the Ministry of Economy and Finance last week.
The second largest life insurer in the world by market capitalisation, AIA will bring a differentiated suite of products and services to the ASEAN nation.
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“We are excited that we have been given the opportunity to enter this nascent market where life insurance penetration rate is currently less than 1%,” Richard Bates, CEO of AIA Cambodia, said.
In 2016, the Cambodian insurance industry posted record growth figures with gross written premium up by 35.6% in 2015.
The country has the lowest insurance penetration rate in the ASEAN region, with insurance contributing just 0.35% of the country’s GDP.
Cambodian insurance industry sees record growth
ASEAN gross written premiums up by 2.9% for 2015