Such evolution was driven by the decreasing business volume reported for several insurance lines which together account for about half of total market: overall motor insurance (ex: the rate of growth for Motor Hull was 6% in 2016 and 32% in 2015; the rate of growth for MTPL in 2016 was 12%, while in 2015 this index amounted 39%), property insurance went down by 5.7%, the life insurance in 2015 reported 50% growth while in 2016 the volume of GWP remained unchanged.
At the same note, the currency depreciation processes in last period have had a negative impact on the insurance services and the overall loss rate. The local currency's devaluation mainly affected health and motor insurance. Many of the components of the product pricing of these services are in direct correlation to the exchange rate.
Since March 1, 2017 the amendments to the state universal healthcare program have entered into force, providing for the private companies exclusion from the state health insurance program. In the opinion of Devi KHECHINASHVILI, Chairman of the Association of Insurance Companies of Georgia these changes will lead to a 10-15% hike in the insurance prices for private health insurance.
Access www.xprimm.com and download the FY2016 Georgian insurance market statistics.
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