1. The Law on Insurance 2014 — The Primary Law
The Law on Insurance was promulgated on 4 August 2014 and aims to strengthen the management and supervision of the insurance business, determine the management of insurance operations, and promote competition, integrity and transparency in the field of insurance. It repealed and replaced the earlier Insurance Law 2000.
Definition of an Insurance Broker
Under the Law on Insurance, an insurance broker is defined as a legal entity working for the benefit of the insured person, providing consultation services and information relating to the types of insurance, terms and conditions and premiums of the insurance contract, negotiating and preparing the insurance contract to be executed by the applicant and the insurance company, and selling insurance policies by receiving a brokerage commission from the insurance company.
Key distinction from agents
An insurance agent is a natural person or legal entity who receives insurance commission from an insurance company and manages to handle the insurance business on behalf of the insurance company. An insurance broker, by contrast, is a legal person who carries out insurance business for the benefit of the insured, providing intermediary services between the insured and the insurance company to conclude an insurance contract.
2. Prakas No. 865 on Licensing for Insurance Agent, Broker & Loss Adjuster (2001)
The services of an insurance broker specifically include: providing consultation services and information relating to different types of insurance; explaining the terms, conditions and premiums of the insurance contracts; negotiating and preparing the insurance contract between the applicant and the insurer; and selling insurance contracts by receiving a brokerage commission from the insurer.
Licensing fees
An insurance broker must pay KHR 4 million for the licence fee and an additional KHR 2 million for the administrative fee.
Licence validity
It generally takes 90 working days to obtain a licence, and at least one month before the licence expires, the broker must submit an application for renewal. The licensee can continue to operate its usual business until the MEF issues a decision on the renewal.
3. Sub-Decree No. 275 on Insurance (2021)
Following the promulgation of the Law on Insurance in 2014, the Royal Government issued Sub-Decree No. 275 ANKr.BK on Insurance on 30 December 2021, which abrogated the previous sub-decree dated 22 October 2001. This is the current governing sub-decree for all insurance activities in Cambodia (with the exception of micro-insurance, which has its own framework).
4. The Regulator
All insurance businesses, including insurers, insurance agents, insurance brokers and insurance loss adjusters — must obtain a licence from the Ministry of Economy and Finance (MEF), now supervised by its Insurance Regulator of Cambodia (IRC).
5. Other Applicable Laws
Apart from insurance-specific regulations, insurance businesses are also governed by the Civil Code 2007, the Law on Commercial Enterprises 2005, the Law on Taxation 2003, and the Law on Insolvency 2007.
6. Penalties
The Insurance Law 2014 (Articles 94–107) sets out penalties for violations, including for brokers who conduct insurance operations in a manner detrimental to the interests of the insured, or who contravene any provisions of the Insurance Law 2014 and other regulatory requirements.