CambodiaBancassurance Deals Squeeze Out Brokers
Exclusive distribution agreements concentrate premium flow inside bank channels, leaving independent intermediaries with shrinking access to new policyholders. Bancassurance accounts for 40% of total insurance sales in Cambodia.
Global Newsflix 2 min read
The Foreign Trade Bank of Cambodia and Manulife Cambodia have renewed and expanded their exclusive bancassurance arrangement, extending a partnership in place since 2016. This deal allows the bank's branch network to distribute Manulife products only, locking out competing insurers and other distributors from that customer base.
Bancassurance is the primary distribution channel in Cambodia, accounting for approximately 40% of total insurance sales in 2022, according to IRC director-general Bou Chanphirou. This figure has risen from 39% in 2021, as recorded in the Insurance Regulator of Cambodia's Annual Report.
The growth of the insurance sector in Cambodia has been driven by bancassurance, with gross premiums reaching over $367 million in 2025. The sector's penetration stood at 1.11% of GDP in 2025, with density at $20.95 per capita.
The IRC and the National Bank of Cambodia have backed bancassurance as a mechanism for expanding coverage, giving bank-channel deals regulatory endorsement. This has created a structural problem for brokers and independent intermediaries, as exclusive arrangements remove entire bank customer bases from the addressable market.
As more banks sign exclusive deals, the pool available to non-bank distributors shrinks. This trend is expected to continue, with the scale of Cambodia's unmet insurance need driving the growth of bancassurance.
Bou Chanphirou said the growth of the insurance sector reflects improvements in risk management, strengthening the social safety net, and enhancing socio-economic resilience. The sector's expansion is seen as a key driver of economic growth and development in Cambodia.
The exclusive bancassurance arrangement between the Foreign Trade Bank of Cambodia and Manulife Cambodia is the latest example of this trend. The deal highlights the increasing competition for bank distribution relationships in the Cambodian insurance market.
Key facts
- Bancassurance accounts for 40% of total insurance sales in Cambodia.
- Gross premiums in Cambodia reached over $367 million in 2025.
- The sector's penetration stood at 1.11% of GDP in 2025, with density at $20.95 per capita.
- The IRC and the National Bank of Cambodia have backed bancassurance as a mechanism for expanding coverage.
Three perspectives
Neutral
The growth of bancassurance in Cambodia has both positive and negative implications for the insurance market. While it has driven the expansion of the sector, it has also created challenges for brokers and independent intermediaries. The trend is expected to continue, with the scale of Cambodia's unmet insurance need driving the growth of bancassurance.
Positive
The expansion of bancassurance in Cambodia has improved risk management, strengthened the social safety net, and enhanced socio-economic resilience. The sector's growth is seen as a key driver of economic growth and development in Cambodia.
Negative
The exclusive bancassurance arrangements have created a structural problem for brokers and independent intermediaries, removing entire bank customer bases from the addressable market. This trend is expected to continue, with the pool available to non-bank distributors shrinking.
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