The uncertainty of modern society in Cambodia: A new perspective of the government in insurance regulation

Abstract

Since the long period of political, social stability and especially the peacebuilding under the interfering of the United Nation, in 1991 the Paris Peace Accord was signed. Cambodia was settled in a peaceful state and it has achieved the basic fundamental for county’s economic development with rapidly status. Accordingly, the social protection policy has critically recognized by the government recently, however, whilst the economic gains are more likely fragile, most of the people are still in the poverty line, the long-term economic prospects are uncertain, such as its weak institution, social inequality and unemployment issues, and social protection system. The social protection system in Cambodia, as a particular, is at an early stage, and very limited. With the small proportion of the covered social insurance program, there are lifecycle shocks and economic downturn have resulted. Thus, the role of private insurance (insurance industry) in boosting the domestic financial economy, and its potential in risk management and complement state’s social insurance program have become the prime matters of considerable interest to state’s regulators and policy-makers.