Asian News - Cambodia: Telco captures over 40% of individual life insurance mart
Source: Asia Insurance Review | Jan 2016
Telecom operator Smart Axiata has become Cambodia’s top life insurance distributor since mobile-delivered insurance was introduced in the country 18 months ago.
“We estimate that Smart Life Insurance now accounts for about 40-50% of total individual life insurance policies in Cambodia,” Mr Kieran Cooney, General Manager of Milvik (Cambodia) said.
Smart offers its 7.5 million subscribers insurance policies underwritten by BIMA and Forte. They dial a short code on their mobile phone. Premiums start at as little as US$0.60 per month, and payments are deducted automatically from the subscriber’s mobile credit on a daily basis, reported the Phnom Penh Post.
Ms Jenny Huynh, Assistant Vice President of Marketing and Communication at Forte Insurance, said the company has seen strong growth in personal accident insurance sales since partnering with Smart in July 2014 to deliver the product via mobile phone.
Smart’s partnership with BIMA, the Cambodian arm of Swedish microinsurance provider Milvik, began in October 2014. Since then, more than 430,000 people have registered for Smart Life Insurance, a mobile-delivered product underwritten by BIMA, and the number is growing by 60,000 a month, Mr Cooney said.
Mobile insurance has increased accessibility to insurance, particularly in rural areas, where insurers do not have offices. According to a study, over 94% of Cambodians own at least one mobile phone and nearly 40% own a smartphone.