Insurances

The Insurances market in Georgia is expected to reach a projected market size (gross written premium) of US$2.48bn in 2024.
Life insurances dominate the market with a projected market volume of US$1.26bn in 2024.
The average spending per capita in the Insurances market is estimated to be US$666.40 in 2024.
When compared globally, it is evident that the United States has the highest nominal value, reaching US$3.8tn in 2024.
The gross written premium is anticipated to have an annual growth rate (CAGR 2024-2029) of 3.79%, resulting in a market volume of US$2.98bn by 2029.
In terms of global comparison, the United States is expected to generate the highest gross written premium in 2024, reaching US$3.8tn.
Georgia's insurance market is experiencing a surge in demand for health insurance coverage due to the country's rapidly aging population.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Insurances market in Georgia has been experiencing significant growth and development in recent years. Customer preferences in the insurance market in Georgia are shifting towards more comprehensive coverage options, reflecting a growing awareness of the importance of insurance protection. Customers are increasingly seeking policies that offer a wider range of benefits and coverage, including health insurance, property insurance, and life insurance. This trend aligns with global patterns of increasing demand for insurance products that provide extensive coverage and financial security. Trends in the insurance market in Georgia indicate a rise in the adoption of digital technologies and online platforms for purchasing insurance policies. Insurers are leveraging digital channels to reach a wider customer base and streamline the insurance application and claims process. This digital transformation is enhancing customer experience and convenience, driving the growth of the insurance market in Georgia. Local special circumstances in Georgia, such as regulatory reforms and government initiatives to promote insurance penetration, are contributing to the development of the insurance market. The government's efforts to improve insurance regulation and consumer protection laws are fostering trust and confidence in the insurance sector, encouraging more individuals and businesses to invest in insurance products. Additionally, the increasing presence of international insurance companies in the Georgian market is introducing new products and competition, further stimulating market growth. Underlying macroeconomic factors, including stable economic growth, rising disposable incomes, and a growing middle class, are creating favorable conditions for the expansion of the insurance market in Georgia. As the economy continues to develop, more individuals and businesses are recognizing the need for insurance as a risk management tool, driving the overall growth of the insurance sector. The increasing awareness of insurance benefits, coupled with positive economic indicators, is fueling the demand for insurance products and services in Georgia.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.