Unison insurance company plans to join the agribusiness insurance state project. The company will launch preparatory works and active communication with beneficiaries as part of the project.
Unison director general Vasil Akhrakhadze provides detailed information on the Georgian insurance market and the project.
-When did you launch operation on the Georgia market? Was it difficult for a new company to find a niche on the Georgian insurance market?
-Unison has been actively operating on the insurance market for 4 years and the company manages to maintain the dynamically growing, stable and reliable image thanks to reasonable management. According to the 2014 official report of the Georgian Insurance Supervision Service, Unison is recorded in the list of Georgia’s three leading insurance companies in terms of generated premium and a 19% market ratio. The company has advanced in the list by 5 positions compared to 2013 and moved to the third place from the previous 8th place.
-The market competition has sharpened. What are your priorities and how do you plan to compete with more experienced companies?
– Penetration into the Georgian insurance market is very difficult, in general, because of the market size. Unison represents a remarkable sample of western-European style insurance company that operates on only insurance direction and this is our advantage. Unison and their founders are interested in developing only insurance business. The company is not affiliated with commercial banks, medical and pharmaceutical business and other structures and this creates more flexibility to ensure freedom and quality of services for our clients.
To maximally manage and minimize risks, Unison company actively employs reinsurance mechanisms. On the one hand, this ensures long-term stability and success of the company, one the other hand, confidence of clients and comfort are guaranteed. As a result, Unison is the most reinsured company in the Georgian insurance sector. Unison has been successfully cooperating with such influential partner reinsurance companies as: Lloyd’s Syndicate, Hannover Re, Polish Re, Allianz, SCOR and so on.
– In general, how would you appraise the Georgian insurance market? How developed is the system and what is the market’s default?
– The previous year of 2014 was full of various challenges. Serious changes have taken place on both financial market and in the legislation.
Insurance is an important sector without which the country cannot be developed. If the legislative basis is not timely improved, I doubt we will fail to meet the European values.
A lack of obligatory insurance products is very problematic, while in all developed countries, including in the Post-Soviet countries, similar practice was introduced long ago in many directions. It is the government’s responsibility to resolve these issues. We have already launched operation in this direction and we hope concrete results will be attained in the near future.
Another important issue is related to fundamental legislative amendments to separate the insurance sector from bank, hospital and pharmaceutical sectors. This step will create preconditions for considerable advancement and success.
– What insurance products do you offer to consumers and on which products do you make accent most of all. Which insurance products are most sellable?
– Our main strategy is to maximally diversify portfolio not to be dependent on one direction or state projects.
Unison provides all insurance products (excluding pension schemes), including life and non-life insurance products. We are leaders in the property insurance field with 32% higher market ratio compared to 2014. Our clients are such major companies as Batumi Sea Port, Radisson, Sheraton, Telasi, Inter RAO assets, Rompetrol, Georgian Beer Company, Geocell, Gino Paradise, Orbi and so on. The responsibility insurance product is also very important, as well as healthcare insurance and auto insurance products.
– You have joined the agribusiness insurance project. This is a very complex project and in many countries similar projects fail without state assistance. Will this project bring benefit to your company and what works should be done to develop a project?
-This year we decided to join the agribusiness insurance state project and started active preparatory works. We are completely ready for the project in terms of technical and human resources to fully implement the project obligations. We have already conducted introductory meetings with several municipalities and farmers in regions. This is a significant project for the agribusiness sector development and it is pleasant the Authorities provide such a support to farmers. This direction is new for our country and it is difficult to think of profits, because insurance culture is very low and our population is not solvent either. Nevertheless, we believe this direction will justify and it is of vital importance to develop this sector for both the business and the country in whole.