GEORGIA: the head of Global Benefit Georgia believes that MTPL introduction will expand the insurance sector to GEL 2.5 billion

25 September 2023 — Marina MAGNAVAL
The draft law on MTPL will soon be submitted to parliament for consideration. According to the Insurance Supervision Service, after the introduction of compulsory insurance, companies will compensate expenses to victims of road accidents in the amount of up to GEL 35,000 (~EUR 12,191), Business Georgia writes.

As Nino Kobakhidze, head of the supervisory board of Global Benefit Georgia, noted, the cost of insurance will be set before the law comes into force, but it will not be fixed, but dependent on the exchange rate and the level of inflation.

“We have a great responsibility, especially at the beginning, because we do not know what the damage will be, how citizens will use insurance policies. In some countries, after the entry into force of such a product, citizens completely transferred responsibility to insurance companies”, says Nino Kobakhidze.

According to Nino Kobakhidze, the main thing is to increase confidence in the insurance sector, which in turn will lead to an increase in the insurance market to approximately GEL 2.5 billion (~EUR 0.87 billion). “Speaking about profitability of the insurance industry, we do not expect significant growth in the early years, but we think that confidence in the insurance industry will increase when 1.5 million people insure their cars. As a result of this change, the insurance sector may increase to approximately GEL 2.5 billion”, emphasized the head of Global Benefit Georgia.

*EUR 1 = GEL 2,87 (23.09.2023)