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Georgian Insurance Sector Becomes Interesting and Hualing Insurance Proves This

Georgian Insurance Sector Becomes Interesting and Hualing Insurance Proves This

Chinese Hualing Group is interested in Georgian insurance market. On December 27 Hualing Insurance obtained life and nonlife insurance licenses. A 100% stake of Hualing Insurance is owned by JSC Basisbank, which is member of Hualing Group.

Hualing Insurance plans to launch operation on insurance market with ambitious plans, Basisbank representatives noted.

“The company will launch active operation in the second quarter of 2018. At this stage, the company is developing specific products in compliance with the company’s insurance strategy. Key objective of the company is to establish special service standards for individual approach to consumers and to create products adapted to client needs. This process will ensure an establishment of long-term and mutual beneficial relations”, Basisbank representatives said.

Konstantine Sulamanidze, head of State Insurance Supervision Office told the Banks&Finances that appearance of Hualing Insurance on the market is a clear sample that operation in the insurance sector becomes more interesting for major financial groups. This process was promoted by a number of legislative amendments, namely, starting 2018 mandatory insurance of responsibility was introduced for owners of vehicles with foreign traffic numbers. Moreover, mandatory insurance was introduced for owners of fairs, shopping malls, filling stations and hotels.

We are working on introduction of mandatory insurance of responsibility in relation to owners of all transports registered in Georgia. Naturally, all these factors shapes an effect of synergy and makes the market interesting”, Sulamanidze said.

Mandatory insurance of responsibility before the third person will better regulate risks, he said.

“Today, the ratio of insurance sector in Georgia constitutes 1.15% in GDP. Along with introduction of mandatory insurance and expected economic growth, in four-year perspective this indicator is to exceed 1.7% and hit 1 billion and this is a quite good indicator.  Even more so in this forecast we also mean GDP growth, Sulamanidze said.