Georgia’s insurance sector is entering a major transformation as the country gradually adopts a European risk-based supervision framework known as Solvency II. David Onoprishvili, head of the Insurance State Supervision Service, explained that the new system shifts the focus from static compliance to quality management and accurate risk assessment within insurance companies.
According to Onoprishvili, the Solvency II framework relies on three main pillars: capital requirements, governance, and transparency. It introduces new solvency standards, strengthens internal audit and compliance functions, and mandates more detailed reporting and public disclosure. The reform aims to ensure that all insurance claims are reliably covered, benefiting policyholders and increasing trust in the sector.
Onoprishvili emphasized that transitioning to Solvency II does not automatically mean higher capital requirements, but it does demand additional financial and human resources from insurers. Companies will need to improve risk calculations, implement digital systems, and enhance management processes. While costs may rise initially, the move is expected to make the sector more competitive and profitable for companies that adapt successfully.
He also noted that the transition is gradual and will take several years, similar to other European countries, where implementation took 8–10 years. As a result, it is too early to predict any direct impact on consumer insurance premiums. The reform is primarily focused on improving service quality, financial resilience, and market competitiveness.
