GEORGIAN INSURANCE MARKET: PROBLEMS AND PROSPECTS

David Vekua

Guram Tavartkiladze Tbilisi Teaching University Associate Professor

Tbilisi Georgia

E-mail: david.vekua@yahoo.com

http://orcid.org/0000-0003-3933-7746

Abstract

The aim of the given research is, on the one hand, to identify the problems and challenges of the Georgian insurance market and, on the other hand, to outline the prospects of its development and improvement.  

         Insurance market is one of the most important sectors of financial service, which is integrated in the system of contemporary economic relations and represents one of the significant financial sources for investing. Development of the insurance sector increases the social safety of the population and enables the enhancement of social and economic cooperation with the State.

   Insurance market, like the entire financial market, is an extremely dynamic and rapidly increasing segment of the world economy. As a result of globalization, it has involved new participants, modern marketing technologies and innovative insurance products. Hence, the world’s insurance market undergoes significant transformation and modernization. 

Research has proved that the imperatives of the international insurance market imposed on Georgia require the transformation of stereotypes widespread in the country’s insurance industry. This should be followed by significant correction in the current paradigm of Georgia’s insurance industry. The given research focuses on the present state of the Georgian insurance market and the problems hampering the transformation of the insurance industry into an efficient system of protection of the population from possible risks.

     The aim of the research is to identify the challenges of the Georgian insurance market and outline the prospects of its development. The novelty of the research consists in the conclusions and recommendations worked out on the basis of observation, as well as inductive and deductive methods. Implementation of these recommendations will enable further development and improvement of the insurance market.