Excellency Bou Chanphirou, Director General of Insurance Regulator of Cambodia
Excellencies, Ladies and Gentlemen
Distinguished Guests,

Good morning, Chom reap sour,

It is my pleasure to welcome you all to today’s inception workshop on “Inclusive Insurance and Risk Financing in Cambodia”. This workshop is part of the Diagnostic Study which UNDP is undertaking in collaboration with Insurance Regulator of Cambodia (IRC) to assess the landscape of inclusive insurance and risk financing in Cambodia. The study is aligned to the Royal Government of Cambodia’s Vision 2030 and 2050 towards inclusive, resilient, and sustainable socio-economic development in Cambodia.

Excellencies, Ladies, and Gentlemen!

In today’s world, we are faced with unprecedented convergence of interconnected risks, driven by economic volatility, political uncertainty, health crisis and existential threats such as climate change. Building resilience to minimize the impacts of these risks has become more crucial than ever. Inclusive insurance is a key tool for managing these risks. Providing insurance for all can not only mitigate financial risks but can also help prevent individuals from falling into debt and experiencing long-term sufferings. It builds resilience against internal and external shocks and serves as a safety-net especially for vulnerable populations.

In many developing countries, including Cambodia, the limited availability of insurance exacerbates people's vulnerability, particularly among the poor. Microinsurance, in particular, plays a vital role in building economic and social resilience. Beyond providing financial protection, it also fosters market activities, creates jobs, and stimulates economic growth. By expanding access to inclusive insurance, countries can empower their citizens and create a more stable and prosperous society.

Excellencies, Ladies and Gentlemen!

Over the past five years, UNDP has collaborated with the insurance industry and government counterparts worldwide. Our initiatives, including the Insurance Development Forum, InsuResilience Global Partnership, and the Ocean Risk and Resilience Action Alliance, help set policies and standards for inclusive insurance. Our partnerships are increasingly expanding beyond policy development to actual programming, with a strong emphasis not only on delivering insurance and risk financing solutions to countries and communities but also on fostering long-term transformational change within the insurance markets.

UNDP’s growing work in this space has led into the establishment of an Insurance and Risk Finance Facility (IRFF) which supports UNDP Country Offices and country partners worldwide. We draw on a critical mass of UNDP expertise, initiatives, and partnerships to support the mobilization and leveraging of resources for the achievement of the Sustainable Development Goals. We work with partners and collaborate with the industry to develop insurance and risk transfer solutions for the SDGs.

My colleagues from the UNDP Finance Sector Hub will provide more details during their presentation.

Excellencies, Ladies and Gentlemen!

Inclusive insurance and risk financing are crucial for Cambodia as they provide a safety net for vulnerable populations and promote economic stability. In a country where a significant portion of the population relies on agriculture and small-scale enterprises, inclusive insurance can protect individuals and businesses from the financial impacts of natural disasters, health emergencies, and other unforeseen events. By offering accessible and affordable insurance products, more people can safeguard their livelihoods and reduce the risk of falling into poverty.

By integrating risk financing into broader development plans, Cambodia can foster a more resilient economy, capable of withstanding shocks and ensuring long-term growth and prosperity. This approach not only benefits individuals but also strengthens the overall financial system, making it more inclusive and responsive to the needs of all citizens.

We therefore hope that this Diagnostic Study will help identify key areas for UNDP’s support and collaboration with national stakeholders and development partners for developing and delivering insurance solutions. Our effort aims to transform the insurance market by integrating best practices and initiatives from global and regional levels, thereby promoting insurance and risk financing in Cambodia.

As we embark on this journey, I encourage each of you to actively engage, share your expertise, and collaborate closely to ensure that all segments of the Cambodian population are protected from different risks and shocks.

I would like to take this opportunity to thank H.E. Bou Chanphirou for his leadership and collaboration on this initiative. I also extend my appreciation to my colleagues from UNDP who have traveled to Phnom Penh for this important work. And, I thank all of you for your participation and contributions in today’s workshop.

I wish you all a productive and engaging discussion.
Thank you, Som Arkun