Insurance claims dive

via CAAI

Monday, 15 November 2010 15:00 May Kunmakara

A SLUMP in insurance claims contributed to a sharp 28 percent increase in premium revenues in the year so far, compared with the same period of last year, official figures from the General Insurance Association of Cambodia show.

The Kingdom’s six insurance firms reported total premium revenues of US$17.3 million in the year to date, compared with $13.5 million in the same period of 2009, according to GIAC figures.

GIAC Chairman Chhay Rattanak said: “Our premiums increased a lot as our claims slumped dramatically.” But he warned claims likely increased in the last few weeks due to bad weather and flooding.

A breakdown of the figures showed fires accounted for 24 percent of revenues in the year to date, motor vehicle claims 20 percent, miscellaneous and personal accidents 24 percent, and engineering claims 17 percent. Chhay Rattanak said $4.6 million had been paid out in the year.

Forte Insurance General Manager Youk Chamroeunrith told The Post on Friday that he expected his firm would see 35 percent growth in premium revenue this year. He said rises across all sectors had been impressive, especially in engineering and motor vehicles.

“Our economy is recovering from the hard times caused by the global economic slump,” he said. Forte’s motor vehicle claims were up 10 percent as the number of customers increased, while other products were stable. He said people’s knowledge of traffic law was limited.

Cambodia Vietnam Insurance Chief Executive Cao Minh Son told The Post on Friday that CVI’s premium revenues reached $707,000 in the year to date.

Chhay Rattanak predicted premium revenues would grow between 20 to 25 percent this year. Cambodia has six insurance companies.