“The loss brought by our participation in the government initiative “Agri-Insurance” was unprecedented,” Deputy Director of Georgian insurance company IC Group told Maestro TV’s Business Contact today.
“We are still in the process of paying off the 23 million GEL loss brought about by “Agri-Insurance,” while our revenues constituted only 15 million GEL. As you can see, the losses are unprecedented,” Shengelia told Business Contact that discussed the subject of government/business cooperation in Georgia.
“These losses, of course, reflected on IC Group’s 3rd Quarter figures,” Shengelia added. “However, the”Agri-Insurance” project continues and we are in the process of improving it together with the government of Georgia.”
Against the grim news of his company’s losses incurred by “Agri Insurance Project,” Shengelia pointed out that a definite success story of government-business cooperation in Georgia was compulsory insurance before the third party that will soon be introduced in the country, according to the businessman.
Earlier this year, insurance expert Giorgi Gigolashvili told CBW that introduction of Compulsory Insurance in Georgia was absolutely necessary:
“Let me give you an example. In the 1920’s, Sweden introduced obligatory insurance of responsibility before the third party. This package has a social aspect. First of all, this innovation will promote the insurance market as the infrastructure will be developed, the turnover of money will increase, and the level of professionalism will improve. It is worth noting any sort of insurance services are oriented on beneficiaries. No government will introduce this service to promote only the insurance business.
In Georgia’s case this service will protect the interests of beneficiaries, that is, the vehicle owners. There are many cases when vehicles hit and damage the property of other citizens and the vehicle owner cannot repair the damaged property, or the vehicle hits citizens and the vehicle owners cannot afford to remunerate the healthcare recovery costs. Therefore, the obligatory insurance of responsibility before the third party will enable insurance companies to immediately resolve their problems. This reform must be implemented in Georgia definitely,” Gigolashvili said.