GEORGIA: The insurance market has doubled in 5 years

25 January 2024 — Marina MAGNAVAL
According to preliminary estimates, in 2023 the insurance market in Georgia exceeded GEL 1 billion (~EUR 0.33 billion). The insurance profit of 18 companies amounted to GEL 250 million, which is 19% more than in 2022, commersant wrote.

“In 2020, a pandemic began that lasted almost three years and affected the insurance sector significantly less than other sectors of the economy. But in the absence of a recession, at the same time there was practically no growth in the insurance sector, or if there was growth for 2-3 years, it was minimal. In 2023, the market exceeded GEL 1 billion, which means that the 2018 result has almost doubled. In 2018, the market amounted to GEL 550 million, now it is over a billion, doubling the volume in five years is a good result, given the pandemic”, commented David ONOPRISHVILI, Chairman, Insurance State Supervision Service of Georgia.

There are 18 insurance companies in the market, while, according to David ONOPRISHVILI, there are several large players, followed by 4-5 mid-level companies and 7-8 companies, operating in relatively small volumes. “It is obvious that the market in our country is quite small for 18 companies, but they all manage to make at least some profit. Some of them have problems, but they are not related to solvency”, he added.

According to the Chairman of the Insurance State Supervision Service, among the segments in Georgia, the undisputed leader is health insurance, which accounts for 45% of the total. Land transport insurance occupies up to 20% of the market, life insurance has grown to 8%.

“In Georgia it is planned to introduce compulsory motor insurance. A draft law has already been prepared and submitted to parliament”, said David ONOPRISHVILI. The Chairman believes that the law will be adopted in any case, and it will increase the volume of the Georgian insurance market by at least 20%.

“It should be noted that the healthcare sector is not profitable for companies. This segment is rather considered as promising; as for today, health insurance is working on the verge of loss. If compulsory motor insurance is introduced, then in 2024 the market will grow by 20% and the extra volume will rise from GEL 200 to 300 million”, he explained.

*EUR 1 = GEL 2.97 (31.12.2023)