Georgia, FY2020: two companies account for about 60% of premiums mediated by insurance brokers

15 April 2021 — Daniela GHETU
Insurance brokers of Georgia ended 2020 with a total intermediated Premiums worth GEL 71.2 million, up by 37.4% y-o-y. In relation to the market total GWP, mediated premiums by brokers accounted for about 10.6%, up from 8.3% the previous year, data published by the market authority show.

Total intermediation fees cashed by the brokerage companies amounted to GEL 5.51 million, showing an average acquisition fee of about 7.7%, decreasing from about 9.2% in 2019.

MAI Broker and GS Broker are closely competing for the top position in the brokerage market ranking: while MAI Broker holds a 30.8% market share (in intermediated GWP terms), GS Broker's share in the total mediated premiums reached 29.7%. The two brokers are holding the dominant positions both on the direct premiums and the reinsurance premiums segments. GS Broker ranks first on the direct premiums segment, while MAI Broker provided for over 40% of the mediated reinsurance premiums.

By the end of 2020, there were 16 active insurance brokers in Georgia, the first two leading accounting for about 60% of the mediated premiums. Insurance and Reinsurance Broker CGA Ltd was registered in January 2020 and is not included in the market statistics.

Insurance distribution in Georgia is mostly performed by direct sales, while bancassurance has a strong contribution to the insurance distribution especially on the life insurance side and for the property insurance products.

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