GEORGIA: real estate is insured only for 6.9% of the population

20 September 2021 — Marina MAGNAVAL
Currently, in Georgia, real estate is insured only for 6.9% of the population, since no one insures property voluntarily - mainly clients of insurance companies in this segment are legal entities or buyers of apartments in the primary real estate market who received mortgage loans and are required to purchase insurance, Business Georgia writes.

The head of the Georgian Insurance Association Devi KHECHINASHVILI noted that there are practically no cases of voluntary real estate insurance without obligations or without being a businessman. "Almost no one insures property voluntarily, and therefore it is impossible to even imagine what a difficult situation a significant part of the population will be in in the event of, for example, a serious earthquake. From the point of view of real estate insurance, the situation in the country is catastrophic. This is very similar to what happened in Turkey several decades ago, when only 3-4% of the population had property insured, and they did not remain homeless after the strong earthquake in Istanbul. The rest of the victims had to hope for help from the state", he stressed.

According to the Insurance Supervision Service, currently only 6.9% of the population (187,797 citizens) are using property insurance services. Insurers paid GEL 4.7 million (~EUR 1.25 million*) for this type of insurance in the first half of 2021.

The leader in the property insurance market is Aldagi, which has 36% of all insured, and its GWP from property insurance is GEL 26.8 million.

*1 EUR = 3.7608 Lari - GEL (June 30th, 2021)

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