Compulsory auto insurance, which is scheduled to enter in January 2015, may be postponed, as currently the work on the law is underway, and it is not yet clear when the project will be sent to the Parliament.
Despite this, competition has increased in this segment on the insurance market and companies offer new packages to consumers.
In particular, a new player in the Georgian insurance market – the company “Kopenbur” – offers motorists Group CASCO services, which will enable the group insurance under one agreement that will reduce insurance rates. The company says that in this case the cost of car insurance is significantly lower than under individual contracts.
Other insurance companies have different opinions regarding “Kopenbur” proposals.
In particular, “GPI-Holding” doesn’t consider a new package as competitive compared with their types of auto insurance.
“Kopenbur” works in Georgia only 2 months, while “GPI-Holding” already controls 30% of the country’s auto insurance market so they cannot fully compete with us “- said the representative of the company Tinatin Stambolishvili.
According to her, discounts on collective insurance for cars existed before, and there is nothing new.
“GPI-Holding” and other Georgian companies have been providing this type of service for 5-6 years.Apart from that, we have other measures to stimulate demand. As for rates, they are always different and depend on many different factors, “- she notes.
The company “Ardi” welcomes the appearance of a new player in the market. According to the manager of Retail Sales Department at the company George Lomidze, increased competition always gives a boost to the business.
“As for the package, there is nothing new. We offer this type of service for 4 years. They didn’t concern individuals, but companies express interest in the collective auto insurance. Although we offered this type of services for individuals – for example, two years ago we had such a proposal – if the person insured his car, he received insurance of his wife as a gift. In general, “Ardi” offers 4 types of insurance – standard, extra, extra plus and absolute. There is also a very expensive service – “avant-garde”. On average, car insurance holds 6.5% of our portfolio. If we have any discounts, they are usually associated with new services. We have been working on the auto insurance market for 4 years and are the third in this area, “- says the businessman.
President at the Insurance Association Devi Khechinashvili also talks about competition on the auto insurance market.
According to him, if the demand for the new company’s product is high, it will promote competition, and it will be useful for the customer.
“Despite the fact that the cars are insured by only 5% of car owners, the level of competition in this sector is quite high. 12 out of 14 insurance companies operating in Georgia offer car insurance, “- he notes.
As of 2013, 874,928 cars have been registered in Georgia.