Life Insurance goes worldwide as Prudential start selling life cover in Cambodia
Life Insurance has for a long time been one of the most important forms of insurance sold anywhere in the world, and the global appeal of the product continues to grow every year. Prudential, who are one of the biggest life insurance providers in the UK have now been given permission to continue that worldwide growth by the Ministry of Economy and Finance in Cambodia.
The move will see Prudential become the first foreign owned company to offer life insurance in Cambodia, and will see the company move into its 13th different country at the same time.
At the end of last year, the Canadian life insurance company, Manulife revealed that they had agreed in principle to enter the Cambodian life insurance market, by it seems Prudential have stolen a march and look set to offer their products first.
Chief Executive of Prudential Asia, Barry Stowe explained that the move was “part of our strategy of investing in growth markets in the region”.
He added, “We believe that Cambodia represents a significant untapped opportunity for us, and we are well placed to capture the opportunities there.”
The move shows the importance of life insurance as a product, and Prudential revealed that they were moving to Cambodia because there was a growing demand for life insurance policies, and that demand is expected to grow on the back of economic growth in the region.
With an 11% increase in gross domestic output last year Cambodia has one of the fastest growing economies in the world, and residents have more and more disposable income to spend on protection products.
Pru revealed in their press release that Cambodia was currently experiencing, “robust economic growth, with 11% compound annual growth rate of GDP during the last decade, as well as a growing urban population, with per capita GDP across the whole population increasing from $468 in 2005 to more than $853 in 2011.”
The move by Prudential has been designed to increase “the knowledge and understanding of insurance protection and long-term financial planning,” in the region, and should increase the number of people covered by a life insurance policy in the country.