Prakas on Consumer Protection in Insurance Services

Introduction

On 10 March 2025, the Non-Bank Financial Services Authority (“NBFSA“) issued a new Prakas No. 022 on Consumer Protection in Insurance Services (“Prakas 022“). Prakas 022 aims to safeguard the rights and interests of consumers of insurance services (“Consumers“) and to enhance trust between Consumers and insurance institutions, including general insurance companies, life insurance companies, micro-insurance companies and insurance intermediaries.

This Update sets out a high-level summary of the key requirements outlined under Prakas 022.

1. 1. Scope of Application

Prakas 022 is applicable to (i) consumers of insurance services; (ii) insurance institutions; (iii) third party administrators; and (iv) actuarial firms currently operating in Cambodia.

1. 2. Information Disclosure Obligation

Insurance companies (including general insurance, life insurance and micro-insurance) and insurance intermediaries must ensure transparency by disclosing important information to the public and Consumers at all of the following stages: (i) advertisement stage; (ii) sale stage; and (iii) post-sale stage.  

1. 3. Unfair Acts

Insurance companies (including general insurance, life insurance and micro-insurance) and insurance intermediaries must not mislead or deceive Consumers, whether intentionally or unintentionally, through any means, including:

• • • Failing to disclose sufficient and accurate information about the insurance product, such as its benefits, insured amount, coverage scope, coverage period, premiums and/or exclusions; or

• • • Exploiting Consumers by encouraging them to enter into an insurance contract despite knowing that the Consumers are not in a position to protect their interests or lack the capacity to understand about the product.

1. 4. Unfair Practices

Insurance companies (including general insurance, life insurance and micro-insurance) and insurance intermediaries shall not promote or adopt a pyramid scheme.

A pyramid scheme is defined as a scheme that:

• • • Supplies goods and/or services in exchange for rewards or bonuses;

• • • Creates buying, selling, or investment opportunities for multiple participants, either individually or through an agent, that is not the buying or selling of actual goods or services; and

• • • Is inherently unfair to participants because:

• • • • Bonuses or compensation depend on recruiting additional participants; and

• • • • New entrants are unable to recruit additional participants.

1. 5. Non-Discrimination of Consumers

Insurance companies (including general insurance, life insurance and micro-insurance) and insurance intermediaries shall provide insurance services with professionalism and pay careful attention to Consumers without discrimination on the basis of race, colour, family status, geography, religion, political affiliation and national origin.

The determination of insurance premiums shall be made in a non-discriminatory manner.

1. 6. Safeguard of Consumers’ Personal Information

Insurance institutions, third party administrators and actuarial firms may use the Consumers’ personal information for the purpose of providing insurance services, with the insurer’s written consent, in accordance with applicable laws and regulations.

Personal information may include identity details, bank account number and balance, credit reports, medical records, payment record of insurance premiums and claims record.

Insurance institutions, third party administrators and actuarial firms shall design and implement measures to safeguard the personal information of Consumers to safeguard against the following risks:

• • • Unauthorised use, access, collection, disclosure, copying, modification or deletion of the personal information of Consumers; and

• • • Loss of storage device used to store personal information of Consumers.

In the event that there is use, access, collection, disclosure, copying, modification or deletion of such information without the consent of the Consumers or in the event of a loss of storage device, the insurance institutions, third party administrators, and actuarial firms shall notify the Insurance Regulator of Cambodia, Consumers and relevant authorities in accordance with the applicable laws and regulations.

7. Sanctions

Insurance companies, third party administrators, and acutarial firms that do not comply with the provisions of Prakas 022 shall be subject to administrative measures and fines as stipulated therein.

8. Deferred Implementation

Requirements in relation to product information disclosure, specifically during the advertisement stage and sale stage, shall be effective six months after the effective date of Prakas 022.

If you have any queries on the above, please feel free to contact our team members who will be happy to assist.