Crop insurance coverage has increased more than 40 percent to cover over 76,000 farmers in the country, as per data shared at an event titled, ‘Updates of Insurance Market in Cambodia’, held on Thursday in Phnom Penh.
The event was presided over by Bou Chanphirou, Director General, Insurance Regulator of Cambodia (IRC), organized by the Insurance Association of Cambodia. “There is no greater peace of mind than in knowing that you and your loved ones are financially secure from various unforeseen situations. Uncertainties in life could crop up at any moment, such as an unfortunate death or a medical emergency. These situations also include an accident or damage to your vehicle, property, etc.,” said Huy Vatharo, CEO, Cambodian Reinsurance Company.
“The importance of insurance should never be undermined. Insurance acts as a vital shield against unforeseen circumstances. It protects you from unplanned expenses and offers a financial cushion from accidents, illnesses and more. Insurance safeguards the financial interests of your family in your absence. It helps them cover immediate expenses and secures their long-term financial stability,” said IRC Director General Chanphirou.
“Bearing the financial impact of these situations can burn a hole into your pocket. You may need to dip into your savings or your family’s hard-earned money. Thus, there is a pressing need for insurance for you and your family for proper coverage and financial support against all risks linked to your life, health and property,” said Chanphirou.
We have a duty to inform the public about insurance claims, said CambodiaRe CEO Vatharo. “Claims will always be paid unless they fall under an exclusion or the policy has expired. Insurance companies in Cambodia are always happy to pay valid claims. But there is also the need to ensure policies are kept active. At that end, insurance companies need to have a mechanism in place to remind people about timely policy renewal,” he added.
The IRC Director General also talked about the need for honesty and trust between the insured and the insurance company. “Insurance can also help protect your home or car in the event of any unforeseen calamity or damage. Your insurance will help you get coverage for damages and repair costs, whichever is needed,” he added.
On the crop insurance side, Ny Lyhoung Business Unit Head/CEO of Forte Micro and Agriculture Insurance, said more than 76,000 farmers have subscribed to Weather Index Crop Insurance against climate change. Today this coverage extends to about 77,000 hectares of rice fields in the country, including 600 villages in three target provinces of Battambong, Kapong Thom and Prey Veng.
He said how Forte Insurance is offering this product with the strong support of the Royal Government of Cambodia under the Rice Sector Development Program (SDP), where the premium is subsidized 50 percent by the government.
The premium is $10 per hectare for coverage of $100. Last year 2023, there were 54,800 farmers in the program, of which 10,000 farmers were paid claims when they experienced excessive rainfall or drought. “This year we expect more claims due to the El Nino effect,” he added.
This rice insurance scheme was pioneered by the Ministry of Economy and Finance with the help of development partners to offer financial protection for the country’s most vulnerable population. Crop insurance was first started as a pilot project in 2015 by Forte, which has operated in Cambodia for the last 25 years.
A study shows that as high as 44 percent of Cambodia’s adult population are farmers. Of this about 80 percent of farmers were engaged in rice cultivation with them growing maize, cassava, sweet potato and soybeans as secondary crops.
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