Margo Zhiznevskaya, Paata Bakuradze, Shorena Miminoshvili. Georgian Insurance Market Briefing, 2011. Financial Brokers Georgia. 2012.
Insurance industry in Georgia experienced lots of changes in 2011 applying on the way this market is developing in 2012. The government has implemented reforms in health care system, which led to increasing number of insured and obtaining access to medical care in remote areas.
The National Bank of Georgia – an official governmental body designated to regulate insurance companies – introduced a regulation on open publishing of quarterly financial reports of insurance companies, highlighting the importance of understanding insurer’s financial information and its implication for the risk and value. In addition, the system of non-life insurance was revised, in order to better protect client’s property if insurance case happens.
Comparing to the previous years, clients became more informed about insurance in general. Insurance products are already considered not only as a mandatory part of the collaboration, or exuberant, but as protection against the risks that may arise in the course of doing business. In order to monitor the process of cooperation and protect interests in disputes with insurance companies, more and more companies are moving to Western system of cooperation, using services of insurance brokers – the number of which is also increasing since the end of 2011.
However, as the market is dynamically moving, not all changes appear to be positive and supportive for its stakeholders. This period is also associated with two insurance companies gone out of the business, reorganizations, and financial difficulties of those market players who are left.
This document is created by the insurance brokerage company Financial Brokers Georgia LTD to organize all the events of 2011, with a stress on business-related, corporative insurance, and give a brief forecast of the market in the following years.