In three years of loss the Georgian insurance industry logged a 40 million profit in 2014.
The insurance expert George Gigolashvili says that in 2011 the insurance industry’s 22-million loss was caused by the obligation to build hospitals and an increase in appealability of the insured, in 2012 the loss exceeded 7 million, the 2013 year was also unprofitable for the industry which suffered more than 3 million GEL due to the participation in the state programs and an increased number of the citizens involved in these programs.
The situation has dramatically improved in 2014.
The agricultural insurance was introduced last year within which companies managed to earn GEL 12 million.
A total volume of premiums raised by the companies outside the state programs, increased from 246 to 298 million. “Aldagi” accounts for the biggest share of the raised premiums among the insurance companies.
In order the companies’ potential to be objectively assessed, insurance experts recommend to compare a volume of attracted premiums outside the state programs and combine data on “old” and “new” Aldagi” and “Imedi L”. Accordingly, as per the 2014 data, without taking into account premiums raised within the government programs in 2014, “Aldagi” leads with a total of GEL 104 million in premiums, in the previous year the figure reached 85 million. “GPI” earned 77 million last year while in the previous year this figure was 58.5 million. “IRAO” – 28 million (a little more than 20 million a year earlier), “Ardi” – 23 million (22 million in 2013), “IC Group”- 17 million (12.6 million in 2013).
Mikheil Japaridze, Business Development Director at the insurance company “Ardi”, talks about a positive trend recorded on the market – the people who declined the private insurance companies services in July 2013 have resorted to private insurance again as over time were convinced of the benefits of service provided by the private sector .
Experts estimate that the largest share of 40 million profit falls on the duet of “Aldagi” – “Imedi L” and “GPI Holding”.
As for smaller companies, who don’t own clinics, Japaridze notes they have to purchase medical services from their rival hospitals or pharmaceutical network, which puts them in a worse situation because of higher prices. In the world this process is regulated by law as the insurance and pharmaceutical companies are separated.
“Today only two or three companies are engaged in the net insurance. However, small companies are more focused on the quality of service – if the big players try to serve the client in their own clinics, others offer their customers more choice, “- Mikheil Japaridze notes.
In Japaridze’s words, the current year will be difficult for the insurance industry because the lari’s devaluation seriously undermined the insurance companies. He says the new contract prices have been increased because of the rise in medical services.