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Embracing European Standards: State-Free Insurance in Georgia

The year of 2015 brought many risks to the Georgian insurance industry. The Tbilisi natural disaster reminded the insurance companies, the Authorities and ordinary citizens that the insurance culture in the country is undeveloped and this direction should be somehow stimulated, even at the legislative level.

In 2016, the companies have to withstand new challenges. The sector has been operating without state medical insurance programs for a year. Therefore, the Georgian insurance industry has to meet the European standards and certain criteria. After Georgia signed the EU association agreement, the country should implement certain instructions, including, in the insurance market.

Currently, fifteen licensed insurance companies operate in Georgia. The sharp market competition enables citizens to choose various insurance products and services.

The 2015 final financial indicators are not famous yet. However, the January to September report shows that the insurance market has increased by 29.4% year on year (up 66.4 million GEL) and the companies have generated insurance premium of over 292 million GEL, while 126 claims were paid.

GPI Holding occupies leading positions in the sector with 57.14 million GEL. Aldagi ranks second with 55.67 million GEL. Imedi L is third with 54.16 million GEL. Unison has advanced to the fourth position with 27.59 million GEL and Irao is fifth with 23.93 million GEL insurance premium. As to the insurance products, health insurance segment ranks first.

The Georgian insurance market is regulated by the insurance state supervision service. The body is to carry out the state policy, ensure market stability, ensure solvency, and foster financial stability and adjust the sector to the EU standards.