In 2017 net profits connected with insurance companies rose Eight times. According to the document published by Insurance Guidance Service, in 2017 web profits of insurance providers marked 18.Ninety million GEL, although the sector’s profits notable 2.63 million GEL in 2017.
What things have driven a rise in profits with insurance companies and how prosperous are the 18 , 000, 000 GEL revenues regarding 14 insurance companies?
Devi Khechinashvili, venture of Association regarding Insurance Companies, told Organization Course program in which 18 million Gelatinized profits on a 500 million market is not a good indicator. In 2017 any sector’s total profits made up 4% and this is not really a positive indicator, he was quoted saying.
Devi Khechinashvili explains that throughout health insurance segment damages made up almost 100%, when better situation will be recorded in various other directions. As to elements fostering? growth, throughout 2017 corporate structure seemed to be different. Moreover, Imedi B carried out IPO, he stated.
Insurance sector expert Giorgi Gigolashvili says that the 2017 profits development is related to GEL trade rate stabilization. Around 2017, when GEL pace extremely plunged, insurance vendors corrected prices, they couldn’t increase prices together with that’s why they failed to end the season in profits, he or she added.
“The insurance sector met the year connected with 2017 prepared. They spotted GEL exchange rate got stabilized and hang up due prices in packages. In 2017 costs rose amid the particular devaluation and prices was not able to be corrected, when it is in 2017 prices were remedied. Naturally, the 2017 earnings would be higher than with 2017”, Giorgi Gigolashvili said.
Add Comment