Sovannaphum Life Insurance is gearing its value-packed customer-centric products to appeal to the Kingdom’s highly under-insured population by scaling up its sales channels digitally and deploying a “win-win” tactical marketing strategy.
With the company marking its sixth anniversary next month, Sovannaphum Life is confident of a steady growth path largely due to evolving consumer habits.
The win-win scenario is that Sovannaphum Life will provide life insurance products which go beyond expectations by providing more value-added services – VAS – to customers without further expense, meaning Sovannaphum Life customers enjoy more benefits at no extra cost.
“Such VAS will be cost effective and help customers save, which can help solve any large spending concerns due to the Covid-19 pandemic,” said Sovannaphum Life Insurance CEO Loke Kah Meng.
Loke, a veteran industry expert, said that based on prevailing market parameters, the homegrown company is optimistic its market share, gross premium and assets will continue to chalk up healthy growth in the next six years.
In the past six years the company has registered numerous achievements, including recording total gross premium growth of 38 per cent, while total assets increased by 54 per cent with strong capital improvement.
Sovannaphum Life now serves close to 160,000 customers and has the largest operations network with close to 300 bank and microfinance institution partner branches nationwide.
For four consecutive years – 2018, 2019, 2020 and 2021 – the company was rated the Fastest Growing Life Insurance Company in Cambodia, and was the Most Innovative Life Insurance Company in Cambodia in 2021.
As of the end of 2021, Sovannaphum Life had a gross premium growth of 38 per cent from 34 per cent in 2020 and total asset growth of 54 per cent from 41 per cent in 2020, with market share growth of 29 per cent from 27 per cent in 2020, said the insurer.
And Loke is confident the next six years will also bring positive growth.“In the next six years, Sovannaphum Life will see growth in terms of market share, gross premium and assets.
“This is a positive sign, with year to year increases because current insurance penetration is roughly only 10 per cent of the total population, so there are still many opportunities to introduce life insurance products,” said Loke.
Sovannaphum Life, part of Canadia Investment Holdings and Thailand’s Muang Thai Life, is recalibrating its marketing plans to position itself in the coming years as the industry heats up with new entrants crowding the life insurance market.
The insurer provides education on planning and managing family finances to avoid a financial crisis should misfortunate event strike any insured family member, while its business model is now even more customer-centric – with Sovannaphum Life designing different life insurance products to meet customers’ needs.
“Due to the Covid-19 pandemic, consumers are faced with reduced family income. This means the spending behaviours of customers has changed dramatically.
“They spend only on important daily necessities – for example food and other useful items – so in order to help our consumers, Sovannaphum Life will introduce win-win tactical marketing and in particular VAS, with which consumers can enjoy more with the same spending or less. “The great impact is that Cambodians are now becoming more aware of the benefits of life insurance as part of financial protection for their family,” said Loke.