Georgia’s insurance sector is expected to end 2025 with moderate growth, reflecting a noticeable slowdown compared to last year, according to Mikheil Japaridze, General Director of the insurance company Ardi. Speaking to BMG, Japaridze said the industry’s growth rate is falling short of expectations.
“This year, the growth of the insurance sector is expected to be around 11%, which is significantly lower than last year’s 17–18%. It has been a moderate year. We are accustomed to faster growth, so this rate is clearly not what we would like,” Japaridze said.
One of the main factors behind the slowdown is the rise in operating expenses, particularly labor costs. Japaridze noted that higher salaries, especially in the service sector, have increased insurers’ costs and are likely to reduce overall profitability, as seen in previous quarters. “According to Geostat, average wages in Georgia have increased, and this has a direct impact on business expenses,” he explained.
Japaridze also highlighted the low penetration of insurance products in Georgia. While medical insurance is relatively well developed, other segments, such as motor and property insurance, remain underutilized. He stressed that the introduction of mandatory insurance types could become a key growth driver for the sector by increasing public awareness and integrating insurance more effectively into household financial planning.
According to the State Insurance Supervision Service, insurance companies collected nearly GEL 1.1 billion in premiums during the first nine months of 2025, representing a 11.6% increase year-on-year, in line with the sector’s overall moderate growth trend.
