Insurance policy prices in Georgia are set to increase significantly this year. Devi Khechinashvili, head of the Insurance Association, told BM.GE that in a “difficult year” for the country, insurance tariffs will rise by at least 15%, compared to the usual 10–12% increase.
Khechinashvili explained that rising costs are driven by a combination of financial inflation, higher service costs, and sharply increased electricity prices. The recent tariff hikes by the Georgian energy regulator (20–25%) are expected to put additional pressure on insurance companies, which already operate in a highly competitive market.
Global price increases for raw materials, including aluminum and steel, also impact insurance expenses, particularly for healthcare coverage and vehicle insurance. Khechinashvili emphasized that insurance is typically a secondary expense for consumers, meaning significant cost increases may reduce affordability.
To mitigate these effects, Khechinashvili called for government support, such as fiscal incentives or tax relief, similar to those offered for private pensions, to keep insurance accessible for the public.
