Archil Tsertsvadze, head of Insurance State Supervision Service, said that Azerbaijan and Israel express intense interest to local insurance market. We have held negotiations with representatives of these countries regarding issues of branch opening or insurance company establishing in Georgia, he told to Sarke.
Tsertsvadze has mentioned that perfection of Georgian legislation will support foreign investors interest growth. Works on insurance legislation harmonization with European standards are undergoing. They should be accomplished by 2010 year, he said.
The same time works on legal amendments in the sphere of vehicle owner compulsory insurance are undergoing as well. Requirement on compulsory insurance was ceased in 2004 because of corruption in this sphere. Since this year, the mentioned requirement concerns only passenger and load carrying vehicles, while other categories will become subject in 2009.
Tsertsvadze said that invitation of European Bank of Reconstruction and Development is planned for works on amendments. We considered advisable to carry out compulsory insurance of vehicles for 1 year period and it should cover not only reparation of damages to health (as it is now), but property damage as well, he stated. With this, vehicle owner should be able to get the policy at any insurance company, Tsertsvadze mentioned.
In 2004, amendments were made in law “On Insurance” (1997), envisaging granting branch rights to foreign countries. The first precedent was issuing in June 2005 license to AIG (American Insurance Group) Georgia, daughter structure of AIG Europe.
According to Insurance State Supervision Service, majority of 15 local insurance companies have been founded with foreign participation.
