GEORGIA: the number of unprofitable insurance companies halved in 2023

9 January 2024 — Marina MAGNAVAL
In 2023, the Georgian insurance market showed slight growth, although overall the indicators did not change much. Positive dynamics was observed; the experts note that the insurance sector is returning to its pre-pandemic state, according to the head of the Insurance Association of Georgia, Devi Khechinashvili, Business Georgia repots.

“The profit of the insurance sector, if distributed among 18 companies, is not very large - the profit on turnover in the amount of GEL 818 million is only 7%, and this is quite low. But a positive fact is that last year 6 insurance companies were unprofitable, and this year only 3, and this is already good”, says Devi Khechinashvili.

According to the head of the Georgian Insurance Association, the insurance market has grown by 20%. Considering that compulsory vehicle insurance has not yet been introduced, the growth was mainly due to health insurance. “The fact that health insurance is growing is also positive, taking into account that in Georgia all types of insurance are voluntary, 20% is a very high growth”, Devi Khechinashvili emphasized.

*EUR 1 = GEL 2.97 (31.12.2023)