Georgia’s insurance sector collected GEL 930 million in premiums in the first half of 2026, up by 16% year-on-year, while claims paid reached GEL 429 million, compared with GEL 363 million a year earlier. However, market concentration, banking group dominance and low insurance penetration remain key challenges, according to Lasha Nikoladze, Executive Secretary of the Insurance Union.
Nikoladze said competition is declining, with four of the top five insurers owned by banking groups, creating a market structure increasingly similar to the banking sector. The Insurance Union plans to approach the Competition and Consumer Agency over the dominance of bank-affiliated insurers in property insurance.
Insurance growth is also uneven, with 7–9 of the 19 insurers periodically reporting stagnant or declining premiums. Health insurance coverage stands at 21%, while motor insurance penetration is only 8%. Nikoladze believes mandatory employee health insurance and compulsory third-party motor insurance could significantly expand the market.
He expects total premiums to exceed GEL 1 billion by the end of the third quarter, but forecasts lower net profit due to heavy summer hail damage and higher motor insurance claims. He said the sector’s development depends largely on the growth of the middle class, mandatory insurance and measures to address market concentration.
