GEORGIA, FY2013: Insurers ended the year with a slump

8 May 2014 — Olesea ADONEV
georgia-statisticsThe Georgian insurance market ended the financial year 2013 with a slump, as gross written premiums decreased by 16.50% in European currency, to EUR 197.21 million (GEL 471.15 million), according to the reports of the Georgian State Insurance Supervisory Service. Since April 15, 2013 the state supervision over insurance activities has been carried out by the Service for the state insurance supervision and not by the National Bank of Georgia, as was the case before.

According to the results published by the new insurance authority, the volume of gross written premiums in the life insurance industry have decreased by one half (49.17%) and totaled EUR 5.27 million, compared with 2012.

At the same time, the non-life insurance segment recorded negative figures too, as in 2013 gross written premiums decreased by 15% to EUR 191.94 million as compared with EUR 225.81 million in 2012. Over the past years the main driver of the non-life insurance segment and of the local market as a whole was health insurance. The share of the health business in the consolidated insurance market increased from 62% (in 2011) to 74% (in 2012). Now, in 2013, GWP in the health segment went down by 18%, to EUR 142.89 million, with a 72.46% market share. The main reason for the decline of the health insurance business is the complete removal of private insurance companies from all government projects. It should be noted that on February 28, 2013, the universal healthcare program was launched in Georgia, addressing the needs of citizens who did not have adequate health insurance.

According to experts' opinion, "in the near future a few companies will leave the Georgian insurance market. The market competition is tougher and only those companies that have a strong "financial spin" will survive, more precisely those which are able to bear the loss of state premiums. We are talking about approximately 3-4 companies."

Access www.xprimm.com and download the FY2013 Georgian insurance market statistics.

Market portfolio & market ranking (in EUR and GEL):
  • Gross written premiums
  • Paid claims
  • Growth rates
  • Market shares

3021 views
Share |