1. 28 May, 2014 Cambodia Insurance development Seminar for Emerging Insurance Markets

2. Outline 1. Introduction 2. Insurance Association of Cambodia (IAC) 3. Insurance Market 4. Challenge issues of Cambodian Insurance Industry

3. Insurance market in Cambodia is still at an emerging stage. The Industry growth 2012 - the growth of the gross premium at 21% compared to last year while the gross claim reduced at -27% compared to 2011. Six Insurance Players: CAMINCO, ASIA INS., FORTE INS., INFINITY General INS., CAMPU LONPAC INS, and Cambodia Vietnam Insurance. Cambodia Re is the only national Reinsurance Company. 1. Introduction

4. 1. Introduction (Con’t) Timeline: Cambodian Insurance Industry 1990 – Cambodian National Insurance Company (CAMINCO) 1994 – Indochine Insurance, as an agent of CAMINCO 1995 – Asia Insurance, as an agent of CAMINCO 1999 – Forte Insurance, as an agent of CAMINCO 2000 – Law on Insurance passed by National Assembly, Registered Capital of US$ 7 million bylaw to transform those three to be licensed companies. 2001 – Sub-degree on Insurance by RGC and Department of Financial Industry, MEF has been assigned as Regulator and Supervisor the Insurance Industry 2002 – Cambodian Reinsurance Company (Cambodia Re)

5. 1. Introduction (Con’t) 2004 – Cambodia Re became a Joint Venture firm with Asian Insurance International (Holding) Company (AII). Indochine Insurance was closed during transformation for being licensed. 2005 – General Insurance Association of Cambodia (GIAC) 2007 – Infinity General Insurance (Cambodia) Plc. and CAMPU LONPAC Insurance Plc. 2008 – Cambodia Vietnam Insurance (CVI) 2012 – 2013: The establishment of Life Insurance in Cambodia. There are 3 companies namely Cambodian Life, Manulife and Prudential. 2012 – General Insurance Association of Cambodia (GIAC) changed to Insurance Association of Cambodia (IAC)

6. 1. Introduction (Con’t) Licensed Companies at present: - Six non-life insurance companies: CAMINCO, Asia, Forte, Infinity, Campu Lonpac Ins, and CVI. - Three life insurance companies: Cambodian Life, Manulife, and Prudential. - One reinsurance company: Cambodia Re

7. 2- Insurance Association of Cambodia (IAC) The establishment of GIAC – GIAC of Cambodia was set up since 2005 to strengthen the insurance and reinsurance market in Cambodia and to develop the market to international standard GIAC to IAC – We transformed from GIAC to IAC in 2012. We cover members from both non-life and life. We have one chairman and 2 vice chairman. Each vice Chairman is responsible for life and nonlife insurance respectively.

8. 2- Insurance Association of Cambodia (IAC) The vision of IAC – To coordinate the business transaction of insurance and reinsurance to be legal, and consistent with the law on insurance – To prepare insurance tariff for the purpose of fair competition so as to secure the policy holders – To reach a win-win stage within insurance industry in order for individual member to build confident with customer

9. 2- Insurance Association of Cambodia (IAC) Activities of IAC: – In 2005, cooperated with Department of Financial Industry (MEF) Insurance Division to held the 5 th Asean Insurance Congress in Siem Reap province – In 2007, a tariff for Fire Insurance has been prepared and introduced to the market – We published Insurance Bulletin in 2009 and 2011. In 2012, we already published Travel Insurance Booklet and distributed freely to the public.

10. 2- Insurance Association of Cambodia (IAC) Activities of IAC: – We conducted the training at local university to increase the insurance awareness to the public. – In 2012, we have amended our Fire Tariff. We draft it in English version. Now it is already translated into Khmer and we are reviewing the Khmer version while MEF already approved in principles on English version. We expect this new Fire Tariff would come into force in early 2014. – We are now drafting MOU with Vietnam to set up Cross Border Motor Vehicle Insurance.

11. 2- Insurance Association of Cambodia (IAC) The objective of GIAC – To act as central body to build a business stability in the industry. – To play an active role in promoting a stable business growth – Creating awareness on the ethical market so that the customers can be more confident – Participate with the government bodies to recommend them the market issues or tendency toward development of the industry

12. 2- Insurance Association of Cambodia (IAC) – To exchange experience with regional associations and outside the region for further development of Cambodia market – To educate the staff of insurance industry on the skill and knowledge especially on insurance professional

13. 3. Insurance Market Insurance Market report 2005-2012 Insurance Market report 2011-2013 Insurance Market report 2013-2014 (3 months) Claim incurred Distributing Channels

14. 3. Insurance Market report 2005-2012

16. 3. Insurance Market report 2011-2013

17. 3. Market 2013 vs 2014 (3 Months)

18. 3. Claim incurred Total Claim incurred 2012-2013 – 2012 : 4,877,397 – 2013 : 14,138,712 Total Claim incurred 2013-2014 (3 months) – 2013 : 4,832,975 – 2014 : 642,168

19. 3. Distributing Channels 1- Agent 3- Broker 2- Marketing Staff

20. 4. Challenge issues of Cambodian Insurance Market Compulsory on automobile insurance. Lack of Insurance Agents Low insurance knowledge of Cambodian people Some unbalanced Law system