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, jobs will be easier to find and home prices are expected to go up.
The insurance market in Georgia in the 1st quarter of 2017 recorded a significant increase of 35 % in premium volume. All lines of business were able to record positive growth in local currency compared with the same period of last year. The non-life area increased by 27.9%, the life area increased by 59.2% and health insurance increased by 17.2%. A total of 14 insurance companies operate in the Georgian market. 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 Insurance Business in Georgia.
Getting a license:-
To start an 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 of 1,000,000 Gel same is fully reserved. You need to also provide a document by a banking institution that these funds have been put into a banking account.
- 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 information of the significant shareholders who hold more than 10% of the company.
- And lastly, there’s a legal fee that you have to submit.
Once you complete the insurance company registration, you get the license to run the following insurances:
- Home Insurance;
- Vehicle Insurance;
- Medical Insurance;
- Accidental Insurance;
- Travel Insurance;
- Baggage Insurance;
- Legal Insurance;
- Company Insurance.
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 documents to the License issuing authority.
- 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
Non-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. Non-life insurance) in a minimum timeframe of 3 months.
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