Page 25 - WTW Asia Insurance Market Report
P. 25

Brunei 	                                                     Cambodia 	

   Brunei, with a population of 400,000 people, has a        The insurance market is fairly small in Cambodia with
   small insurance market with 5 to 6 insurers.              insurance penetration at 0.46% in 2015, well below the
                                                             ASEAN penetration rate of 3.8%. A majority of citizens
   In 2016, the insurance market was flat and did not        are uninsured, as a result of which the focus has been
   experience any growth. Rates were stable across all       on educating the public in basic insurance concepts
   lines of business. Heavy competition in Brunei kept       and emphasising the benefits of insurance.
   rates low and flat, making income hard to sustain and
   growth a very distant prospect.                           There were no significant losses in 2016. Rates across
                                                             all lines of business remained stable. The decrease
   Being the third largest oil producer in South-East Asia,  in tourism in 2016 and political uncertainty regarding
   Brunei is experiencing economic strain due to the         the upcoming general election has impacted the
   fall in oil prices. The market is forecasted to decline   market. Investors are increasingly concerned about
   further in 2017 because of the delay in time taken for    the political environment following the assassination
   the effects of the global economic slowdown to trickle    of a political analyst who was a strong critic of the
   down to the market. Declining economic performance        government. A number of garment factories have closed
   goes hand in hand with delays in paying for premiums.     and a few companies withdrew their investments.
   A foreseeable risk in the insurance industry due to the
   difficult economy in the coming year is insurers being    The environment is expected to turn positive after
   kept waiting for payment from their clients well beyond   the general election in 2018. Micro-insurance is also
   the norm.                                                 an area that is experiencing high demand among the
                                                             low-income segment of the population, especially
“Rates in the insurance market were flat                     for health, accident and crop insurance, and further
across all sectors of business as most                       growth is expected in the coming years.
business is driven by the government.”

The annual
gross written
premium is


   the bulk of which is motor insurance

                                                                         25Asia Insurance Market Report 2016
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