Cambodia's Life Insurance Market Sees Moderate Growth, Forte Life Achieves Profitability in 2025

Cambodia's life insurance sector experienced moderate growth in the first half of 2025, marking a shift from the rapid expansion seen prior to the COVID-19 pandemic. Forte Life Assurance reached profitability since its market entry in 2019, now covering over 800,000 lives, approximately 60% of the total insured population in Cambodia. Despite economic challenges, particularly in provinces affected by cross-border trade fluctuations and tourism variability, demand for affordable life protection remains resilient.

Market liquidity constraints have emphasized cautious household spending, with a preference for savings over new long-term insurance commitments. However, Forte projects an optimistic outlook for the latter half of 2025, buoyed by factors including U.S. tariff reductions, infrastructure developments like the new airport, returning migrant workforce, and peak tourism seasons which could enhance consumer confidence.

Cambodia's life insurance penetration remains under 1% of GDP, signifying considerable potential for growth. Analysts anticipate the sector might double or triple in the next decade as financial literacy improves and demand for products aligned with education funding, retirement planning, and credit life expands. Product innovation is expected to maintain focus on accessible, straightforward offerings such as term insurance and education savings, distributed via banks, microfinance institutions, employers, brokers, and digital platforms.

Regulatory bodies, including the Insurance Regulator of Cambodia and the National Bank of Cambodia, have strengthened bancassurance frameworks, which represent a substantial portion of life insurance premiums. Enhanced guidelines around exclusivity, reporting, and consumer protection have increased transparency and stabilized insurer-bank partnerships, fostering a supportive environment for sustained sector development.

Persistent challenges include low financial literacy which insurance providers are addressing through embedding coverage in everyday financial activities and leveraging partnerships. Collective efforts involving regulators, financial institutions, and media are pivotal for advancing consumer education and expanding insurance adoption. Overall, Cambodia's life insurance market is poised for gradual, steady growth driven by evolving market conditions and increasing awareness of insurance's role as a financial safeguard.