Car insurance premiums in Georgia have increased by approximately 10% year-on-year as insurers face rising claims settlement costs, according to Kote Sulamanidze, CEO of BB Insurance. He attributed the increase to higher spare parts prices, changes in vehicle import and customs policies, and reduced imports of older cars.
Sulamanidze explained that the cost of repairing damaged vehicles has risen significantly, partly because older imported cars previously served as a source of affordable spare parts. Higher repair expenses are putting pressure on insurance companies’ profitability, despite growth in the sector.
BB Insurance has recorded increased demand for retail services over the first nine months, while its corporate segment has also continued to grow. However, Sulamanidze noted that higher claims settlement costs and inflation have limited the impact of this growth on the company's profitability.
According to the Insurance State Supervision Service, Georgia's insurance market grew by 15% during the first three quarters. In the first half of the year, the sector collected GEL 930 million in premiums, up 16% year-on-year. The country's 19 insurance companies reported combined revenue of GEL 189 million and net profit of GEL 64 million.
