Paata Ghadzadze: Demand for Planned Outpatient Services Grew by 15%-18%
COVID-19 pandemic has less affected the insurance sector. On the contrary, the pandemic has brought even positive trends into some directions, Paata Ghadzadze, TBC Insurance director-general told Business Partner.
The losses decreased amid the first lockdown as a result of lower road traffic. As for medical direction, the address from non-COVID patients decreased, but COVID has indirectly affected the life insurance part. “Losses have increased essentially. As a negative impact, incomes of both business companies and physical bodies declined, part of clients refused to extend insurance agreements, part of them reduced the budget.
Despite this circumstance, TBC Insurance has recorded a growth thanks to attracting new beneficiaries”, Ghadzadze noted. As for the insurance sector expectations, Paata Ghadzadze expects that the situation will be improved soon in both retail and corporate segments. The demand has increased for corporate life insurance and critical disease insurance packages amid the pandemic, he added. “Beneficiaries asked for covering costs for treatment of pandemic-type diseases, but this was possible only in some cases, depending on costs”, Ghadzadze said. Amid the pandemic, medical services were postponed, namely, planned hospital services, but this sector holds an unimportant portion in the insurance costs structures. A greater portion is registered for medications and outpatient services.
The Insurance State Supervision Service will publish the 2020 financial reports of insurance companies in the near future. The industry generated a premium of GEL 513.4 million in January-September 2020. Net profits marked GEL 44.3 million. Total assets of insurance companies marked GEL 976.9 million, while the capital amounted to GEL 282.7 million. The Georgian insurance market registered 18 insurance companies, including 17 ones hold life and nonlife insurance licenses, while one insurance company holds only nonlife insurance licenses. Comments