STATISTICS: GEORGIA, 3Q2014: Still affected by negative rates in health insurance, the local market reported a 44% decrease in GWP

In January-September 2014, the Georgian insurance market decreased by 44% y-o-y in local currency to GEL 225.95 million (EUR 101.6 million), according to data published by the Insurance Supervisory Office - ISO.

The negative trend recorded by the local insurance industry was driven by the lower premiums reported by the health insurance sub-sector: -65% to GEL 110.9 million (EUR 49.9 million), about 49% of the insurance market. At the end of September 2013, the same insurance class accounted for 78% of the total market (GEL 317 million).

The main reason of this decline was the fact that, starting April 1st, 2014, the private insurance companies were completely removed from all the government's projects, including the universal healthcare program.

Excluding the health insurance segment, the other classes reported positive growth rates: accidents (8.6%), Motor Hull (13.3%), property (61.5%), GTPL (40.6%) or travel (22.5%).

Member of VIENNA Insurance Group since 2006, GPI Holding accounted for the largest share on the local market: 27%.

The former leader, ALDAGI BCI, ranked second, with a 25% market share. It is important to note that this summer, Bank of Georgia (the owner of ALDAGI BCI), decided to split the activity of the insurer in two new companies: IMEDI L (which operates only on the medical insurance segment) and "the new" ALDAGI BCI which operates only on the property and accidents insurance segments. In 2012, ALDAGI BCI became the owner of an 85% capital share of IMEDI L, in a deal of GEL 8 million (EUR 3.8 million). The "new" ALDAGI BCI insurer ranked 5th (of 15 active insurers), with a market share of about 7.5%, while the company IMEDI L ranked 12th (1.3%).

Access www.xprimm.com and download the 3Q2014 Georgian insurance market statistics.

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

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

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