STATISTICS: GEORGIA 1H2014: Insurance market down by 19% in local currency

In 1H2014, the Georgian insurance market decreased by 18.82% y-o-y in local currency to GEL 159.58 million, according to data published by the Insurance State Supervision Service of Georgia. Due to exchange rate variations in the European currency, the insurance market decreased by ~27.30%, to EUR 66.27 million.

"Decisions that were taken during 2013 were important for the insurance industry in terms of the state social insurance and non-insurance related obligations. These changes were reflected in the 2014 results (and, it seems an obvious reduction in the income) that actually improved to a great extent (indicator) the profitability of insurance companies. Today, we can clearly conclude that the removal of financial programs, which aggravated the financial situation of companies, caused an increase in revenue and an improvement in the balance", explained Lasha NIKOLADZE, Head of the Insurance State Supervision Service of Georgia.

It must be noted that the negative trend recorded by the local insurance industry was driven by the lower premiums reported by two of the main business lines: Health insurance (-36.30%), Accidents (-9.11%), which accounted together for more than 57.28% of the entire insurance premium production: GEL 91.41 million or EUR 37.96 million. In the past years one of the main drivers of the local insurance market was health insurance (editor's note: the share of the health business in the market portfolio increased from 62% in 2011 to 74% in 2012, but in 2013 this segment went down by 18%, with a 72.46% market share). The main reason of this decline was due to the fact that starting April 1st, 2014 insurance companies were completely removed from all the government's projects, such as the universal healthcare program.

Starting 2015 Georgia will introduce compulsory insurance MTPL; this law functioned in Georgia until 2004. According to NIKOLADZE, the new line of mandatory insurance MTPL will occupy an important place in the portfolio of insurance companies in the field of non-life insurance. At the same time, this type of insurance helps to protect the population and to prepare the Georgian legislation on insurance to get closer the relevant EU legislation.

Access www.xprimm.com and download the 1H2014 Georgian insurance market statistics.

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

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

GEORGIA: Starting in 2019 the model of financing universal health insurance in the country will change

Beginning in 2019, Georgia will change the model of financing within the General Health Insurance program. According to the Ministry of health the new system of reimbursement provides for transition to a model of diagnostically related groups (DRG), based on which a patient's diagnosis, age, length of hospitalization, and other criteria will determine the amount of funding, wrote Business Georgia.

2018-09-19

ON THE MOVE

MARSH the formation of MARSH-JLT Specialty and its leadership

The global insurance broker MARSH announced the formation of MARSH-JLT Specialty - the new specialty business that combines the specialty teams of MARSH and JARDINE LLOYD THOMPSON Group (JLT) and will be headed by Dominic BURKE, currently CEO of JLT Group.

21.11.2018

TOP EVENT

Reducing the risks in agriculture by using insurance means, discussed in Skopje

On November 1st, an Agricultural insurance conference took place in Skopje, Macedonia, organized by the Insurance Supervision Agency in cooperation with the Ministry of Agriculture, Forestry and Water Economy. Drawing attention to the necessity of reducing the risks in agriculture by using insurance was the event's main purpose.

06.11.2018

IIF 2018 - Insurance in a DIGITAL WORLD

Emmanuel DJENGUE, Innovation Director, Europe - RGAX, Spain is the Keynote Speaker at IIF 2018 - Insurance in a DIGITAL WORLD Conference in Bucharest, on November 27.

05.11.2018

See all