In the interview with XPRIMM magazine, Levan Jishkariani, GrECo Georgia General Manager, shares the challenges and the outlook GrECo Georgia faces in the local Georgian insurance market.
XPRIMM: How would you generally assess the insurance market’s development in 2023 compared to the previous year? Were there апу challenges that your company had to overcome оп the Georgian market?
Jishkariani: ln 2023, the Georgian insurance market saw impressive growth, expanding by about 17%, with total premiums surpassing GEL 1 billion – a significant milestone. The insurance brokerage segment grew even more substantially, increasing from GEL 7.8 million to over GEL 10 million in brokerage revenue.
For GrECo Georgia, 2023 was a pivotal year, with revenues exceeding GEL 2 million. The company maintained its position as the top broker in the market, though the competitive landscape expanded, with over 20 brokers active by the end of the year.
XPRIMM: What factors did significantly hinder growth of the insurance sector, in your opinion? Which business lines support the market and your company’s development and play the key role?
Jishkariani: With greater foreign direct investment (FDI), the Georgian insurance market could experience much larger and more robust growth. However, recent geopolitical challenges have made this more difficult. Currently, Motor and Health lnsurance remain the primary contributors to the market, together accounting for over 60% of the total gross written premiums.
Motor insurance holds strong growth potential, with over 90% of vehicles in Georgia still uninsured, offering opportunities for expansion in the coming years. Health insurance remains the most popular line, with medical inflation playing a significant role in driving up premium costs in this segment.
XPRIMM: What do you think about the introduction of compulsory insurance for tourists and how it may affect the market?
Jishkariani: I have seen this type of insurance implemented in several countries over the years. lt offers peace of mind for tourists, ensuring coverage during their trips while simultaneously providing growth opportunities for the insurance industry. As with other types of compulsory insurance, this line is expected to significantly boost the insurance market.
XPRIMM: Health insurance is опе of the largest segments. How would you describe the evolution of this segment last year?
Jishkariani: Health insurance has long been the dominant line in the Georgian insurance market and continues to be the largest segment. lts growth has significantly contributed to the overall market expansion in 2023. However, it is important to note that corporate health insurance remains the most well-developed and retained segment, while individual health insurance is offered by only a few insurers.
XPRIMM: How in your opinion would MTPL introduction expand the market? How do you assess your company’s potential of this business line?
Jishkariani: The introduction of MTPL (MandatoryThird-Party Liability) insurance in Georgia has been delayed and postponed multiple times. lt remains a critical requirement for the market, as Georgia is one of the few countries without MTPL insurance. lmplementing this insurance is expected to contribute significantly to market growth, potentially adding several hundred million GEL. Given our leadership in reinsurance broking, we anticipate substantial growth opportunities when MTPL is finally introduced, with increased demand for reinsurance services supporting the market expansion.
XPRIMM: How would you describe the development of reinsurance in Georgia in 2023 and this year?
Jishkariani: Our company has maintained its position as the market leader for over a decade, with a dominant presence in the reinsurance segment, accounting for 33% of total reinsurance brokerage. ln 2023, revenues from reinsurance broking grew by more than 25%, and this upward trend is expected to continue. We are forecasting even stronger results for the current year.
Additionally, over the past few years, we have successfully utilized local capacities by reinsuring insurance companies domestically with peer insurers, further strengthening our market position and fostering local partnerships.
XPRIMM: ln 2023, GrECo boosted revenues. How was the situation on the Georgian market?
Jishkariani: Next year, the GrECo Group will celebrate its 100th anniversary, marking a century of growth and success. The Group has significantly boosted its revenues, and while Georgia is a relatively small market compared to Austria, we have also made valuabe contributions to this success. At GrECo, our goal is to become a highly relevant, top tier corporate risk and insurance specialist in every market we serve. We take great pride in being the well-established market leader in Georgia, and we remain committed strengthening this position.
XPRIMM: What do you think about the insurance market evolution in Georgia in 2024? What new challenges, in your opinion, the market and your company might face, and what are the key opportunities?
Jishkariani: The Georgian market is expected to continue its growth in 2024, and the insurance brokerage sector will follow this trend. However, as business evolves, increasing regulatory requirements present challenges. These include KYS (Know Your Customer) and AML (Anti-Money Laundering) checks, along with the demands of newly introduced laws on personal data protection, which may be particularly difficult for smaller brokers to manage. While these measures are crucial, they impose additional burdens. On a global scale, issues such as peace and environmental sustainability are also pressing challenges, and we must take action now, while it is not too late, to avoid future consequences.
Read the full publication: https://www.xprimmpublications.com/books/bayg/#p=31
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Levan Jishkariani
General Manager
GrECo Georgia
T +995 57755 7474
