Georgia’s economy is characterized with dynamic growth tendency. For past 5 years, Georgian economy annually grew by around 4%. According to recent projections and announcement of World Bank, its GDP will grow by 5.2% in 2017, by 5.3% in 2018. Personal income is expected to grow in Georgia, and life insurance premium also expected to go up in the same line. The insurance market in Georgia in the 1st quarter of 2017 recorded a significant increase of 35 % in premium volume. The life insurance domain increased by 59.2%.
Efficient life insurance markets are an essential basis for the Georgia sustainable strong economic growth. Kind of opportunity is available in Georgia, capital and knows how; its insurers play a major role in the establishment of an efficient insurance sector. All lines of business were able to record positive growth in local currency compared with the same period of last year. The Georgian insurance market has a lot of potential in terms of developing and introducing a range of business lines. The service provider can contribute to the region’s strong development.
From this analysis, one can expect the potential of Life Insurance business in Georgia.
Getting a license:-
To start a life insurance company in Georgia you need to have an insurance license from the National Insurance registry. To get an insurance license in Georgia, one needs to meet the following criterion to get a license:
- The company needs to have a minimum capital 1,500,000 Gel.
- You need to be registered under a Joint stock company or a limited liability company to get the insurance license in Georgia.
- You need to provide the respective certificate from the registry of companies to NBG.
- Administration of the company should present a certificate of non-conviction.
- You need to provide the information of the significant shareholders who hold more than 10% of the company.
You need to fill the documents like the criminal record of the owners who own more than 10% share in the company. You also suppose to provide the proof of payment along with the proof of your Joint Stock Company (JSC) or Limited liability Company (LLC) registration to the insurance registry. You can easily register insurance company name in Georgia after getting the license.
You also need to provide a few other documents to the License issuing authority detail of same is as under:
- Certificate of incorporation, memorandum and articles of the Joint Stock Company (JSC) or Limited liability Company (LLC) registration;
- Last 10 years Criminal record copy for each board member;
- Information about the applicant’s and other members’ identity, who directly or indirectly own a significant share (10% or more), documents must be notarized and apostilled;
- Documents that prove the experience and education of each director;
- Payment proof of the license;
- Document issued by banking institution(s) same certifying that the founders of the legal entity have fully completed in monetary terms capital requirements as prescribed by the legislation for carrying out insurance business in Georgia;
- Other Document covers all administrators and shareholders detail, those also owning a significant share of the legal entity, by clearly mentioned that these key peoples have a clear criminal record. Same are also not part of the administrative body of any other organization that is running in insurance domain. In addition to all key stakeholders have a desirable experience and education in the respective domain.
Life Insurance Licence- Cost and Time Frame:-
For starting up a company the first question that comes to mind is what should be the budget to start the organization. For insurance life company license registration and another set up in Georgia the approx. cost is listed.
- The main costs for documentation, licenses, government fees, submit documents to the ministry of justice, translation and notarization of the documents is 20,000 euros.
- One can expect the license (i.e. life insurance) in a minimum timeframe of 3 months.