About 80% of the revenue on the insurance market belongs to one company. in terms of net revenue, the leader of the market is Aldagi Insurance. According to the information published by the Insurance Supervision Service, last year, 16 457 056 GEL out of 20 mln GEL also belonged to Aldagi. The company is followed by GPI Holding with 6 713 074 GEL, ARDI with 2 186 986 GEL and so on.
Private insurance sector assesses the situation on the market as unhealthy. Insurance company Unison stated to BM.ge that relevant agencies should be more attentive to this trend. “Generally speaking, revenue of insurance industry is quite low, compared to other industries. Moreover, net revenue of the entire insurance industry is concentrated in one company, which generates over 80% historically and probably this situation needs more attention from the part of competent agencies, which are supposed to take care of healthy competition and market development”, - states Vasil Akhrakhadze.
The leader of the market – Aldagi – also states that this situation is unhealthy. Giorgi Baratashvili, the head of the company claims that for them, as representatives of the leading company, it is very important that other players of the market had higher revenues. “Compared to the previous year, profitability grew by 21%. In 2016, 2/3 of the market’s total revenue belonged to Aldagi, in 2017, this rate increased to 84%, which means that the risks are properly insured and the company is financially healthy.
Generally speaking, it is bad that so many companies are operating on the market and major part of revenue belongs to one company. This is not good for the market and if we want to talk about stability of the market , the revenue should increase”, - states Giorgi Baratashvili. Representatives of Georgian Insurance Association say that profitability of Aldagi can be explained by the fact that the company doesn’t sell health insurance, which incurs the highest losses.
Devi Khechinashvili, the Chairperson of the Board of Association, states that generally revenue of insurance sector is very small. According to him, total revenue of the sector made only 5% of total revenues, which is a very low rate.
