Despite steady growth in Georgia’s insurance market, industry insiders reveal that the increase is driven more by price hikes than by a rise in new policyholders. According to experts, the first half of 2025 presented significant challenges for insurers, marked by inflation in medical services and a noticeable increase in policy utilization.
“The first six months were quite difficult for the industry compared to the previous period,” said Giorgi Baratashvili, General Director of Aldagi. “While we are seeing growth over 30% in the retail sales sector, this expansion is primarily the result of higher premiums rather than an influx of new customers.”
Baratashvili explained that the rising cost of medical services led to an average 15% increase in insurance product prices during the first half of the year. This inflationary trend affected not only health insurance but also auto insurance policies.
“The utilization of healthcare services has also risen, putting additional pressure on the pricing of insurance products,” he noted. “We expect that by the end of the year, health insurance prices will rise by approximately 20%, while auto insurance might see a 15–20% increase.”
These trends signal not only growing expenses for consumers but also an increased loss ratio for insurers. “By ‘heavy,’ I also mean the financial strain,” Baratashvili added. “The increase in claims and service usage has significantly impacted profitability.”
While official results for the first half of the year are still pending from the Insurance Supervision Service, first-quarter data paints a telling picture. In Q1 alone, Georgian insurance companies collected 453 million GEL in premiums, up 55 million GEL compared to the same period last year. Net profits also rose slightly, reaching 26 million GEL, up from 25 million.
The market remains dominated by leading players such as GPI Holding, TBC Insurance, and Imedi L, which continue to command the lion’s share of attracted premiums.
As the sector navigates rising costs and shifting consumer behaviors, stakeholders await further data to assess how the second half of the year might unfold, and whether the industry can stabilize amid ongoing inflationary pressures.
