Each week we find business, government and insurance news from around globe affecting the local Cambodia insurance market. These are this week’s talking points at People & Partners Insurance headquarters including the opinions of our 50-year veteran of the insurance industry, AKA ‘The Professor’.
As an aging population, South Korea is a financial ticking time bomb, according to the Asia Insurance Review. Cambodia does not have a National Pension Scheme yet but the NSSF (National Social Security Fund) has plans to introduce one. As Cambodia is a ‘young’ demographic country, the National Pension Scheme should be easy to operate when it arrives.
Bloomberg reports the Shanghai-based international conglomerate and investment company, Fosun International, is considering an offer for all or part of Belgian Insurer Ageas in what could be its boldest move to expand its international footprint. This is in line with China’s overall ‘Belt and Road’ initiative and a good move for its expansion globally.
In the Asia Insurance Review, an interesting article about the largest non-life insurer in Australia (IAG) calling for clearer regulation of autonomous vehicles. This should include explicit detail to avoid costly court cases later, and must address issues such as minimum cover, and who pays for what in the event of claims.
Insurance companies in India are conducting audits of workplace cafeterias and proposing simple hygiene changes to reduce claims relating to gastroenteritis, colitis, and heart related ailments under large group policies. I know how many claims cheques I sign per month for food poisoning, gastritis, colitis and other outpatient claims caused mainly by unclean or unsafe kitchen practice, so in my opinion this is a great idea.
Flying a drone in NZ may become an increasingly costly pursuit, with NZ Broker (one of New Zealand’s largest insurance broking groups) predicting owners may not be covered for damage, loss, or third party liability. Cambodia also has quite a number of drones used for photography and video. At a large wedding recently on Koh Pich, I had one approach me. It hovered above head height (only just) whilst it took pictures of me. I would not have minded but the pilot was very young and he didn’t look at all confident. Drones can be dangerous. They should be regulated in every country, and insured!
The Asia Insurance Review has revealed that an industry working group set up in December 2017 to examine innovations in insurance has now published its findings and recommendations on wearable and portable devices. These reports should help insurers assess risks better and could lead to reduced premiums at time of renewals. It’s a great idea but these devices are still in low usage in Cambodia. I like the ‘smart’ designs from an appearance point of view but our market is still a way off giving discounts for the wearers of ‘wearables’!
According to Reuters, Lloyds’ Chairman Bruce Carnegie has announced that the world’s most famous insurer is aiming to increase profits by improving efficiency. They certainly need to, after a resounding loss for 2017 due to weather related disasters in the Caribbean and North America.
According to the Thai Life Assurance Association (TCAA), the Life Insurance market has grown steadily at 5% growth in total premiums for the first half of this year, mainly driven by Bancassurance and insurance agents. It’s a good result for the Thai market, but Cambodia’s growth rate is 50%! Admittedly it’s a newer and much smaller base, but still impressive.