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INSURANCE

Insurance activities are primarily regulated by the Law of Georgia on Insurance, which establishes the system of mandatory and voluntary insurances in the Country.

The Law of Georgia on Insurance serves as a legal basis for regulating insurance activities. While the country is supporting independence and development of local insurance market, the Law is also guarantee for foreign insurance and reinsurance companies to act directly on the Georgian market through a registered branch office.  

Georgian law establishes principle of distinction between insurance and other financial activities and prohibits insurance companies the issuance of a loan to buy out its own stocks; the issuance of a loan to buy the stocks of a company shareholder having a significant percentage of shares or the stocks of the administrator; the issuance of a loan to buy the stocks of a subsidiary.

Striving to ensure the international standards of financial compliance for insurance companies, the Law requires the companies to provide financial reports audited in accordance with the International Financial Reporting Standards (IFRS) and International Standards of Auditing (ISA) issued by the International Federation of Accountants.

The State supervision on the insurance activities is carried out by the LEPL Insurance Supervision Agency newly established as a result of the latest reform in the regulation of financial services. One of the main functions of such Agency is to grant insurance licenses.

The insurance market is also significantly influenced by the State insurance policy, which had significantly increased the number of insured population and currently represents one of the greatest  parts of revenues in the field.