MEETING OF ISSSG SUPERVISORY BOARD WAS HELD AT THE PARLIAMENT OF GEORGIA
In the Parliament, under the leadership of Irakli Kovzanadze, the meeting of ISSSG Supervisory Board was held. The head of the Insurance State Supervision Service of Georgia, Davit Onoprishvili, presented to the Board members the 2021 report of the State Insurance Supervision Service, the results of 5 months of 2022 and future plans. Meeting participants also reviewed the challenges of the insurance sector.
"At the meeting, we reviewed the 2021 report and updated the Board members about the progress of the first 5 months of 2022. We also discussed the practically completed TWINNING project, implemented in partnership with the Spanish Supervision Service over the last 2 and a half years. In 2021, the total combined premium, i.e. the income of insurance companies was 776 million GEL in general. The loss was also increased, because 2021 was a pandemic year and the insurance market hardly increased, it stayed at the same level as in 2020. The sector as a whole is growing, we are looking into the future and we are already working with the World Bank on new insurance products," said Davit Onoprishvili after the meeting.
According to Irakli Kovzanadze, the Chairman of the Finance and Budget Committee of the Georgian Parliament, who is also the Chairman of ISSSG Supervisory Board, as of May 31, the assets of 18 insurance companies constituted to 1 billion 126 million GEL, which is 8% higher compared to the same period of the previous year and the equity has increased up to 12%, making it to 319.1 million. "During 5 months of 2022, the financial premium raised was 399.5 million GEL, which is 10% higher than the data of the same period of the previous year. Indemnified losses have increased by 19% and amounted to 186 million GEL. The insurance profit of the companies equalled to 77 300 000 GEL, i.e, increased by 14%. And the net profit is 9 million 400 thousand lari", said Irakli Kovzanadze and talked about the reasons for the decrease in profit.
Like he said, the decrease in net profit at the background of the increase in insurance profit is caused by the increase in administrative expenses.
According to Irakli Kovzanadze, it is important to introduce state-of-art methods and elements of healthy corporate management in the insurance sector, including in the supervisory boards of companies. "The insurance sector has a great potential for growth, especially in the conditions when we have high economic growth. Of course, a lot of work needs to be done in this regard, e.g. introduction of the institute of the independent director. From this perspective, we should take advantage and use the results of the TWINNING program", said the Chairman of the Finance and Budget Committee.
The meeting was attended by members of the Supervisory Board: Levan Davitashvili, Vice Prime Minister, Minister of Economy and Sustainable Development; Lasha Khutsishvili, Minister of Finance; Otar Shamugia, Minister of Environment Protection and Agriculture; Zurab Azarashvili, Minister of IDPs from Occupied Territories, Labor, Health and Social Protection; Levan Vepkhvadze, Executive Director of the Business Association and Elguja Meladze, the President of the Association of Georgian Employers, as well as the representatives of the Insurance State Supervision Service of Georgia.