When up and running, this operation would extend Prudential’s life insurance footprint in the region to 13 markets. The move will also make Prudential one of the first entrants into a market “that is in its formative stage of development”, Prudential Corporation Asia said in a statement today.
Prudential’s announcement of its plans to enter the Cambodian market comes seven months after another insurance giant with a significant presence in Asia, Toronto-based Manulife, said it had received “approval in principle” from the Cambodian regulator to begin marketing its products to Cambodian clients. As reported, Manulife said this would be its eleventh operation in Asia.
Barry Stowe, chief executive of Prudential Corporation Asia, said the Pru’s expansion into Cambodia was “part of our strategy of investing in growth markets in the region”.
“We believe that Cambodia represents a significant untapped opportunity for us, and we are well placed to capture the opportunities there,” Stowe added.
Growing demand cited
In its statement announcing the move, Prudential noted that demand for financial and life insurance products in Cambodia is expected to grow rapidly.
The country is 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,” Prudential said.
Stowe said Prudential hoped that its presence in the country would be able to help raise “the knowledge and understanding of insurance protection and long-term financial planning” in Cambodia, which in turn would also support the development of its life insurance industry.
“We are excited by the market’s prospects and look forward to developing and offering tailored products that meet the needs of the Cambodian population,” Stowe said.
Prudential first established a representative office in Phnom Penh in December 2010. It said today that it will be shortly relocating its premises to Phnom Penh Tower Building at Monivong Blvd, which will be its corporate office in Cambodia. Manulife also has its Cambodian base of operations in Phnom Penh.
