Can you introduce us to Forte Life Assurance?

Forte Life Assurance was founded in 2019 as part of Forte Group, which has been around since 1999. Forte is the oldest and largest insurance group in Cambodia, holding the number one market share in both general insurance and life insurance. Forte Life is Cambodia’s leading insurance provider, with a customer base of almost 900,000 people. This represents about 60% of the Cambodian customers who use life insurance products in the market. We’ve built trust through innovative products that cater to both individuals and enterprises. For instance, we provide credit and depositor’s protection for leading microfinance and banking institutions in the country.

Our distribution model is also unique, utilizing an omni-channel platform with direct sales, bancassurance, broker partnerships, and agency channels. This has enabled us to grow quickly, even in a market where life insurance was relatively unknown just several years ago. My proudest moment is knowing that every day, about 20 families receive various claim benefits from us. This has kept the team and me working hard and committed to serve. 

How has the Cambodian insurance market evolved in recent years?

Cambodia’s insurance market has seen  interesting developments, with Covid-19 playing a major role in increasing awareness. Before Covid, life insurance was new to many Cambodians. Most people didn’t see the need for long-term risk management. However, the pandemic made everyone realize how fragile life is. This sudden shock prompted many to view insurance as a necessary safety net, something that could provide for their families in case of the unexpected.

Despite this, growth in the (nascent) insurance sector remains modest due to three factors. First, the retail sector hasn’t fully recovered. Insurance, especially life insurance, is largely driven by a dynamic retail sector, including professionals and families with disposable income. Many of these people are still financially stretched, and some sectors—like tourism, real estate and construction—haven’t bounced back as strongly as expected.

Second, the insurance market is significantly affected by the increase in non-performing loans (NPLs). We’re seeing a dramatic rise in customers unable to maintain their payments, with the number of NPLs tripling compared to pre-Covid levels. This situation makes it difficult for individuals to consider purchasing insurance if they can’t afford their existing obligations.

The third factor is the real estate market. Many Cambodians invest their assets in real estate, which is not as liquid as other forms of investment. The slowdown in real estate and construction has also affected cash flow, reducing people’s ability to invest in long-term financial products like insurance.

Could you elaborate on Forte’s performance in light of the current challenges?

Despite the challenges, Forte Life has managed to post growth, even in the first half of 2024. Our bottom-line result has improved by about 50% year-over-year, and we have gained new customers by greater than 200,000. This success comes down to our diversified strategy. Unlike many of our competitors, we don’t depend solely on retail customers or the banking sector. Instead, we have a well-mixed distribution model that includes both individual clients and corporate clients across key sectors.

Forte Group’s core products over the last few years have been auto, property, health, employee benefits, and agricultural insurance. These are the areas where we’ve seen the most dynamism. Auto insurance, for instance, has grown steadily as more Cambodians buy more vehicles. Property insurance remains strong, especially with the gradual recovery of the real estate sector. Employee benefits have also grown as more employers offer insurance packages as part of employee compensation.

We also focus on niche markets that are often overlooked by other companies, like agriculture insurance. Forte is the only company in Cambodia offering comprehensive agricultural insurance, and we’ve worked closely with government and international organizations to roll out these products. For example, with support from the Asian Development Bank and the Royal Government of Cambodia, we’ve been able to subsidize premiums for agricultural insurance, which is vital in a country like Cambodia, where agriculture remains a key economic driver. We see this as a sector with enormous potential for future growth.

What is Forte Life Assurance ‘s approach to digitalization?

Since our inception in 2019, we’ve operated without paper submissions; everything is done digitally. All premium payments are processed via bank transfers, eliminating cash transactions. Each bancassurance sales staff are equipped with a notebook.

Last month, we launched the Forte Life Customer App for mobile payments, policy management and product reviews. Everything is at our customers’ fingertips.

What are your main goals for 2025? Are there any projects you would like to highlight?

Our primary focus will be executing our diversified product and distribution strategies to drive customer acquisition and enhance customer experience. Forte Life Assurance is developing new products and improving quality in serving our clients. We’re also expanding our distribution network, with plans to add more partners next year.

Could you convey a final message for the 4.4 million weekly readers of the Los Angeles Times?

Cambodia has immense potential. Despite past challenges, we are on the right path to becoming an upper-middle-income country by 2030, and a high-income country by 2050. Companies should seize the opportunities here to gain early mover advantage, just as Forte has done. The private sector can drive significant change in this fast-growing economy, supported by open-minded regulators, and a strong business community.