XPRIMM: How would you describe the current state of the insurance market in Georgia, and what are the most pressing challenges? 

Michael JAPARIDZE: The market is entering a new phase of development and price discovery. Insurers are implementing several key initiatives to strengthen their business models and adapt to a rapidly evolving environment shaped by geopolitical developments, AI integration, rising capital costs, inflationary pressures, talent migration, and climate change. 

XPRIMM: In 2024, ARDI underwent a significant transformation, splitting into two independent entities—ARDI Insurance and the newly formed Autograph. What led to this decision, and what are the expected benefits? 

M.J.: Indeed, 2024 marked a major milestone for ARDI, as Georgia’s largest institutional investor, Georgia Capital PLC (LON: GCAP), invested in the ARDI brand, reinforcing its foundations. Before the transaction, ARDI was a privately held company with limited institutional backing. The investment provided the necessary structure and resources for further development. The split into two entities allows for sharper strategic focus and greater agility. 

XPRIMM: What are ARDI’s strategic priorities for the next 2–3 years? 

M.J.: Our strategy revolves around three pillars: customer centricity, innovation, and outstanding service. Everything we do stems from these principles. As customers’ needs, market dynamics, and technology continue to evolve, our focus is to align our resilient business model with these changes and ensure ARDI remains adaptive and forward-looking. 

XPRIMM: Medical insurance continues to dominate the Georgian insurance portfolio. How would you assess the performance of the health insurance segment in 2024, and what challenges have you encountered? 

M.J.: Health insurance remains the dominant line of business in Georgia, accounting for 43% of the market. It will likely retain this position until mandatory lines are introduced. The biggest current challenge is rising price sensitivity, driven by DRG pricing under the universal healthcare (UHC) system. We are actively engaging with stakeholders to update and improve the framework. 

XPRIMM: What is your view on catastrophe risk insurance in Georgia? Do you see opportunities for public-private partnerships (PPPs), such as insurance pools or catastrophe bonds? 

M.J.: There is definitely room for PPPs, but their success depends on the risk profile, pool model, and the nature of the product. Risk pools - whether for natural catastrophes or other lines—are valuable if they contribute to meaningful risk mitigation and stimulate market growth. 

XPRIMM: How is ARDI leveraging digital technology to enhance customer experience and operational efficiency? 

M.J.: We’ve taken major steps in digitalization. A few years ago, we launched our first AI-powered voice assistant - ARDIANA. While she continues to improve, we believe human interaction remains essential, so our approach is augmented AI: human + tech. We’ve also introduced new apps and online tools for claims handling, making the process more accessible and transparent for customers - and there’s more innovation to come. 

XPRIMM: What regulatory changes or reforms would further strengthen the resilience and growth of Georgia’s insurance sector? 

M.J.: Georgian insurers are currently navigating a phase of non-incentivized development. The regulatory framework is generally adequate for today’s market capacity. However, as new lines of business emerge, changes to solvency and other requirements may be necessary. Encouragingly, the local reinsurance market is also developing, expanding both local and regional capacities. 

XPRIMM: How do you view the role of insurers in building societal resilience, especially in underserved or rural areas? 

M.J.: Development in rural areas is extremely challenging due to low financial awareness and limited income. Many residents don’t perceive insurance as a tool for risk mitigation. However, state incentives, such as the Agricultural Insurance scheme, where the government subsidizes premiums, could offer a viable solution. There’s still a long road ahead to close this gap. 

XPRIMM: Lastly, what is your outlook for Georgia’s insurance sector—and for ARDI—over the next five years? 

M.J.: The potential is certainly there. However, growth could accelerate significantly with the introduction of mandatory MTPL. At the current pace, the market is likely to double within five years, but with MTPL in place, the trajectory could be even more dynamic and transformative.

Interview conducted by Daniela GHETU