Case Study

Microinsurance Pre-Feasibility Study- Georgia

Can a microinsurance product be offered in Georgia? Factors affecting feasibility
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This study provides the results of a demand and supply research in Georgia that focused on developing microinsurance products and structures to deliver them.

The study states that:

  • In Georgia, the insurance industry is very small in terms of gross premiums;
  • Yet, Georgia is abundant with insurers and a strong demand for microinsurance;
  • Low and middle-income people note that their greatest unmet risks in order of priority are related to heath care financing, business risks, theft, death of a breadwinner, and income continuation for post-retirement years;
  • However, confidence in the insurance industry is marginal.

There is a need to :

  • Strengthen consumer protection safeguards within the current system in order to improve confidence of the market;
  • Make microinsurance different from mainstream insurance;
  • Educate insurers, microfinance institutions and the markets.
  • Interventions that would have positive impacts in Georgia are:
    • A microinsurance brokerage firm,
    • A custodial company.

The paper concludes that:

  • There is potential for knowledgeable and experienced interventions in Georgia to help guide different parties, as well as safe keep the long-term funds;
  • Any intervention should be seen in terms of relatively easy expansion of a branch network into Armenia and Azerbaijan;
  • This would virtually triple the potential market and would aid in the generation of economies of scale.

About this Publication

By McCord, M., Matul, M.
Published