GEORGIA: a market leader, ALDAGI, believes the market has big potential but is still immature

"By global standards, insurance in Georgia is still immature - in the initial stages really - therefore there are many things that are yet to be done and the market has big potential," Giorgi BARATASHVILI, CEO of ALDAGI, told the FINANCIAL in an interview.

ALDAGI, one of the leaders in the Georgian market (2nd place in 1H2018 by GWP) and the oldest private insurance companies in Georgia, plays a big role in the development of the insurance sector through state social projects and as an initiator of new products. It was the first company to be founded in 1990 after the collapse of the Soviet Union and since then has been functioning actively for 28 years. In 2014, ALDAGI established agro-insurance in cooperation with the state, which was well implemented and has been successful for the last 3 years. The state subsidizes 50-70% of insurance premiums and ALDAGI sells agro-insurance throughout Georgia.

Pointing out the biggest challenges when introducing new products, BARATASHVILI mentioned the people's low level of awareness and lack of essential information, saying "amongst the wider population there is unfortunately a feeling that insurance is a waste of money. A culture of having insurance is growing slowly in popularity. To this end, we regularly provide information about insurance to the public. Our responsibility is to inform the population about the need for insurance - that insurance is one of the major risk management options."

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