As the sun rises over Batumi, on the eastern coast of the Black Sea, 2025 edition of the International Insurance Conference of Georgia kicks off today, June 12, bringing together industry leaders, regulators, and innovators from 18 markets across the globe to discuss the future of the insurance sector.

This year's conference promises to be a landmark event, featuring a series of insightful panels, sessions, and networking opportunities designed to foster collaboration and drive advancements in the insurance landscape.

In a significant highlight, the Insurance Profile Georgia FY2024 will be officially launched during the conference. This comprehensive country report provides an in-depth analysis of the Georgian insurance market, including crucial statistical data for 2024 and exclusive interviews with key market professionals. Attendees will gain valuable insights into emerging trends, challenges, and opportunities that are shaping the future of insurance in Georgia and beyond.

Join us as we explore the themes of resilience and transformation in the insurance industry, setting the stage for a productive and forward-thinking dialogue that aims to elevate the standards of insurance practices in the region. Stay tuned for live updates and key takeaways from this pivotal event!

Prof. Karel Van HULLE, Catholic University Leuven, Belgium and Goethe University, Frankfurt, Germany

• Insurance is about mitigating and financing risks, which in our days, so complicated by a volatile geopolitical and economic environment, is crucial, makes life liveable.
• To accomplish their role, insurers need to be creative, open to new technologies and progress in all areas and, of course, they need to be financially stable

Jaba PUTKARADZE, Ministry of Finance, Georgia

• Georgian economy is fast increasing and one of the main drivers is tourism, for which Batumi is one of the most attractive destinations.
• Insurance is a very important part of our financial landscape. Property insurance is very important for supporting the fast and strong development in the construction sector; it gives more confidence to foreign and local investors, as well as to final users of these new real estate units
• We are striving to improve several aspects in the industry that still need work, but I trust in the industry’s reliability and wish for progress.

David ONOPRISHVILI, Chairman, Insurance State Supervision Service, Georgia

• With participants from 19 countries, this conference today is the proof of the strong interest there is for our market
• Economic growth in Georgia is mainly contributed by the real growth in trade, construction, information and communication, transportation and storage and other services, also characterized by increased labor productivity. The baseline, conservative forecast of economic growth in 2025 amounts to 6%, however it is expected that this projection will increase, reaching 9.3% by the end of the year.
• Inflation is expected to be above the target in 2025 and approach the target in 2026, with the average annual inflation in 2025 closed to 4%
• The Georgian insurance market doubled every five years. The average growth rate over the passed 10 years was 15%, indicating steady development. In fact, the insurance industry steadily follows and even surpasses Georgias’ strong overall economic growth rate
• Medical Insurance is still holding a leading position (42% of GWP), followed by Motor, both of which are among the most desired products for customers due to sensitivity to the frequency of losses
• Market concentration is still moderate, leaving space for improvement. Yet, there is a considerable gap between 3 largest companies and the following 2-3 also significantly large insurers. Further market participants are mainly concentrated in 1.5-4.5% range.
• Bank assurance products still hold large portion on the market. ISSSG is working with colleagues on the improvement of this situation
• Increasing capital requirements had a certain influence on the solvency ratio since 2021 due to growth premiums and claims, causing an increase in Solvency Margin, together with increasing minimum capital requirements. But insurers managed to adapt
• One new insurer was established in 2024 and acquired major part of the portfolio from another insurance company, this was the largest deal on the market, reaching up to GEL 25 million.
• Introduction of favorable taxation model, which supports reinvestment of profits without being taxed, also played a significant role in growing market capitalization.
• Our institution’s priorities, as supervising and regulatory body, are: efficient management and development of the Organization, further development of supervisory activities, promotion of consumer protection and financial education, support for the development of the insurance industry and enhancing cooperation

Devi KHECHINASHVILI, Chairman of the Board, Georgian Insurance Association, Georgia

• We strongly believe in the progress of this industry. However, while we saw high growth rates, it is important to note the insurance penetration is not increasing too much. We need to develop other lines of business
• Throughout the last years preparations went on to introduce mandatory MTPL insurance, a LoB that would help industry’s growth and also protect citizens. Yet, the entire process is delayed
• For the first time, private pensions received a fiscal support, which is driving growth in this sector also
• Adopting the Estonian model of taxation is producing visible positive effects in the insurers’ balance.
• A very good thing for the industry is that dialogue between the regulatory authority and the market players is very open and helps both parties to better align
• If all the reforms already prepared will actually happen, than insurance penetration would instantly increase from 1.3%to ~2%, which would be a strong progress, considering our development stage

Devi KHECHINASHVILI, Chairman, Georgian Insurance Association, Georgia

• We, as insurers, understand the importance and quality of the Solvency II regime. Preparations are ready, but I would recommend that the timing and pace of introducing Solvency II should be carefully approached, especially because the process bares some costs for the companies
• We should also prepare for introducing Solvency II and IFRS regulations by forming actuaries, professionals absolutely needed
• Retail property insurance is clearly underdeveloped, as in some respects we need to better adapt products to the real estate property specifics

Giorgi BARATASHVILI, General Director, Insurance Company ALDAGI, Georgia

• It is true that we had, as a market, a strong growth, but much of it came from price increases, so to really grow we need to develop new lines of business
• Adopting Solvency II is a rather complex process and we are aware that it will require effort, but we need to start, to preserve our competitivity and access to foreign markets
• Bancassurance plays an important role in property insurance, as most policies are linked and required by the existence of a mortgage. People lack initiative for insuring their properties, unless required by other factors.

Michael JAPARIDZE, CEO, ARDI Insurance, Georgia

• There are so many years since we are talking about the MTPL introduction; from our side, of the industry and regulatory body, we are ready; now is a matter of political will
• There is definitely much to do in promoting property insurance, not only for retails customers, but for businesses as well. It is a lot of growth space there, but a huge volume of work is required to educate people with regard to risks and actually push insurance takeup.

Sofia LEBANIDZE, Chairperson of the Supervisory Board, PSP Insurance, Georgia

• Introduction of MTPL insurance is needed not only for the growth of our business, but for the Geogian citizen’s protection. Of course the decision in a political one and probably depends much on the perceived welfare of the citizens
• Adopting Solvency II should not be a burden for the market, but a tool to increase market stability and credibility. However, we need to approach implementation carefully, especially considering that there are many small companies.
• Property and non-life insurance in general are the most profitable LoBs but unfortunately they have a small share in the market portfolio.

LIVE INTERVIEW:

Canan Sanem CENGİZ, Head of Strategy Development Department, SEDDK- Insurance and Private Pension Regulation and Supervision Agency, Türkiye

• Turkish market had to deal with many challenges in the last years – extremely high inflation, currency devaluation and, of course, insurance specific risks – major earthquakes, extreme weather
• High inflation is challenging both for insurers and us, as supervisors, because we need first and foremost protect customers
• SEDDK is constantly preoccupied by the market digitalization; we are performing several studies to identify the needs or the areas where digitalization is needed most
• Digitalization is more than moving something from paper to electronic; all processes need to transform and be shaped according to another logic than the analog one

Prof. Karel Van HULLE, Catholic University Leuven, Belgium and Goethe University, Frankfurt, Germany

• Although the Solvency II 2020 Review brings many changes in the Solvency II Framework Directive, the basic principles of Solvency II remain unchanged; EIOPA in its Opinion on the Solvency II 2020 Review indicated clearly that it wanted evolution and no revolution
• The EC did not look at this review as a mere technocratic exercise:
  • The review should serve broader political objectives, in line with the Capital Markets Union Action Plan, the European Green Deal and the Sustainable Finance Strategy (see Commission Communication)
  • The review should upgrade the present micro-prudential framework with a macro-prudential part, including new powers for supervisory authorities in order to deal with systemic risk and a new regime for recovery and resolution and for insurance guarantee scheme
• Main changes in the Solvency II Directive refer to:
  • proportionality (some smaller companies are exempted from the scope of application of Solvency II, according to well defined criteria);
  • A new cathegory of insurers was defined: “small and non-complex undertakings and groups”- which may benefit from Solvency II regime exception, provided they fulfill certain criteria
  • Sustainability - Insurers must take into account the short, medium and long term horizon when assessing sustainability risks and have strategies, policies, processes and systems for the identification, measurement, management and monitoring of sustainability risks over the short, medium and long term
  • As part of their risk managment, insurers must develop and monitor the implementation of specific plans, quantifiable targets and processes to monitor and address the financial risks arising in the short, medium, and long term from sustainability factors, including those arising from the process of adjustment and transition trends towards the relevant MS and Union regulatory objectives and legal acts in relation to sustainability (transition plans)
  • Insurers must assess in their ORSA their material exposure to biodiversity related risks
• The sustainability and climate change related proposals are challenging for all parties concerned (undertakings as well as EIOPA)
• There is a need to coordinate the requirements on transition plans in SII with those required by the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD)
• The EC has proposed a number of simplifications on sustainability reporting but much remains to be decided
• Non-respect of the quantifiable targets in the transition plans can be sanctioned by supervisory authorities
• The amended Directive further enhances the powers of EIOPA but fails to make EIOPA a supervisory authority in its own right
• The implementation of the 2020 Review Directive will be challenging for all MS because of the large number of amendments

 

Manuela ZWEIMUELLER, Special Advisor to the Secretary General of the International Association of Insurance Supervisors (IAIS).

• The IAIS 2025-2029 Strategic Plan has been published; The 2025-2029 period follows an intensive standard setting phase; going forward there will be a shift to maintenance and refinement of these standards
• Focus shifts to: assessing key risks and trends in the global insurance sector; supporting effective supervisory practices; robust implementation assessment and support
• Throughout several successive crisis, the global insurance sector remained largely resilient; recent global insurance supervisory reforms have served the sector well
• The IAIS Holistic Framework is an integrated set of key elements aimed at assessing and mitigating systemic risk in the global insurance sector. The framework consists of three main elements (“pillars”): a global monitoring exercise, supervisory material/ measures, and an implementation assessment.
• The Holistic Framework supervisory material is integrated into ICPs and ComFrame and is designed to improve the assessment and mitigation of systemic risk in the insurance sector.
• There is a move away from the previous binary approach toward a proportionate application of an enhanced set of policy measures to a broader portion of the insurance sector.
• One of the thematic areas covered in the Holistic Framework supervisory material is “crisis management and planning”, which includes standards related to recovery and resolution.

Prof. Karel Van HULLE, Catholic University Leuven, Belgium and Goethe University, Frankfurt, Germany

• The IDD was adopted in 2016 and succeeds the Insurance Mediation Directive (IMD) adopted in 2002. IDD is a minimum harmonization directive. Contrary to its predecessor, which only dealt with insurance intermediaries, the IDD deals with all forms of insurance distribution including direct sales by insurance undertakings
• All (re)insurance distributors and employees of (re)insurance undertakings carrying out (re)insurance distribution must possess appropriate knowledge and ability in order to complete their tasks and perform their duties adequately (see the list of minimum professional knowledge and competence requirements in Annex 1, continuous education and proportionality)
• Insurance distributors must always act honestly, fairly and professionally in accordance with the best interest of their customers. Marketing communications must be fair, clear and not misleading.
• No arrangement by way of remuneration, sales targets or otherwise may be made that could provide an incentive to itself or its employees to recommend a particular insurance product to a customer when the insurance distributor could offer a different insurance product that would better meet the customer’s needs
• Second EIOPA Report on application of IDD showed several changes in the market, starting with a significant drop in the number of intermediaries registered as natural persons (increase of age, stricter professional requirements): from 1 MIO to 800.000. Also, there is a very large diversity in terms of national categories of insurance intermediaries
• Bancassurance continues to play an important role in the distribution of life insurance with other intermediaries such as agents remaining prevalent in the non-life sector
• The amount of online sales remains low in most MS but is increasing on a yearly basis
• The number of passporting intermediaries is decreasing slightly
• There is a mixed picture in terms of the level of professionalism and competence of insurance distributors
• Digitalisation and the growth of new distribution models continue to present risks, but also opportunities

Ekaterine TSERETELI, Deputy Chairperson, Insurance State Supervision Service, Georgia 

• Georgia is working hard to align its insurance regulations with EU and international standards. This is part of its commitment under the Association Agreement with the EU.
• One big focus has been Solvency II. Georgia is adopting its structure, which is built around three pillars: financial requirements, governance and risk management, and transparency. This effort has been supported by the EU, through a twinning project with Spain.
• The Insurance Distribution Directive, or IDD, is also on the agenda. New rules for insurance brokers have been drafted, including registration, ownership transparency, and professional standards. Agents, however, are still outside the regulatory scope for now.
• When it comes to pensions, Georgia passed a law on Voluntary Private Pensions in 2023 and issued 18 new by-laws. The ISSSG now supervises the 3rd pillar pension system.
• On motor insurance, two draft laws have been prepared – one for vehicles registered in Georgia and one for foreign vehicles. These are now combined into a single draft law.
• Financial reporting is moving in line with EU norms. Insurers switched from IFRS 4 to IFRS 17 in 2023, and new laws now cover group-level supervision for financial conglomerates.
• ESG is another big topic. Georgia is starting to include environmental, social, and governance standards in its insurance laws and has joined an interagency effort to align with the EU’s Corporate Sustainability Reporting Directive.
• Internationally, the ISSSG is very active. It’s a member of IAIS, IOPS, CESEE ISI, and more. It’s also working closely with the World Bank, the Asian Development Bank, and partners like Austria, Slovenia, and Armenia.
• Consumer protection is a major area of reform. The ISSSG participates in European initiatives and has been organizing public awareness events like World Consumer Rights Week.
• The anti-money laundering and counter-terrorism financing (AML/CTF) system has been strengthened over the years. Georgia’s insurance sector is now considered low-risk from an AML/CTF perspective.
• Last but not least, Georgia is building its actuarial profession from the ground up. Since 2018, it has offered formal actuarial training, and starting January 2025, insurers will be required to employ certified actuaries. New university-level courses are also being rolled out.

Alexander MEZURNISHVILI, Information Security Manager, Administrative Department, Insurance State Supervision Service, Georgia

• AI= Enabling machines to “THINK” andACT in ways that mimic humanabilities, such as learning, problem-solving, understanding, recognizingpatterns and making DECISIONS.
• Currently, 92% of Fortune 500 companies are using OpenAI’s technology; 94% of business executives believe that AI is a key to success in the future, while AI is already being used by 73% of marketing departments.
• Businesses adopting GenAI could achieve 15.7% cost savings.
• 70% of Gen Z have used generative AI tools.
• Just 3% of the skills for software engineering are resistant to AI.
• Key industries with the highest potentialfor automation include:
  • Banking (54%)
  • Insurance (48%)
  • Energy (43%)
  • Capital markets (40%)
  • Retail (34%)
  • Communications and media (33%)
• More than half of organizations believe cybersecurity is the biggest barrier to AIadoption and they didn’t adopt AI due to those reasons.
• There are three main vectors that can compromise AI: Jailbreak Attacks, Prompt Injection, Data poisoning/backdoor attack
• As market authority, we have adopted regulation to mitigate AI risks

Erik BARNA, Board Member @ Cluj - IT cluster, Romania

• By using AI, the time for settling a property clame (floods) may decrease frm about 0 days to a few hours
• There are technologies very helpful: Telematics,for personalized auto risk, Satellite imagery, to assess wildfire or flood exposure, Wearables to adjust health premiums based on real behavior
• AI helps a lot the risk assessment, by enriching d\received data with data gathered from other reliable sources (ex; meteo statistics, geological data, theft rate in the area etc.)
• What AI sees when assessing a damaged car: It highlights dent depth, damage zones, even estimates the repair cost
• AI won’t replace underwriters or adjusters. It augments their skills and capacity
• The best results come from hybrid models — human empathy + machine accuracy.
• AI in insurance is already delivering speed, precision, and transparency. The winners in our industry will be those who build trust on top of it.

Nikolay KOBZEV – IT and Operation Director, TBC Insurance, Georgia

• One of the biggest shifts for us has been our mobile app, which really brings convenience front and center. People can now access key insurance services anytime, from anywhere — and the adoption has been great.
• We’ve also introduced chatbots and self-service kiosks to take care of simple tasks, making things faster for customers and freeing up our team for more complex needs.
• In retail insurance, we've gone fully remote. Today, a client can get a casco insurance quote in less than two minutes — no paperwork, no manual data entry, everything flows through smart CRM tools and integrated platforms.
• Our telemedicine platform, RedMed, has been a game changer, especially during the pandemic. With over 200 doctors and more than 30 specialties, it’s now tightly connected to our health insurance services — and it helps offload about 25% of minor cases.

And we’re starting to use AI for claims — for example, processing car damage images automatically. It’s still early days, but it’s a clear step toward faster, more accurate settlements.

LIVE FROM BATUMI: Insights and innovations at the International Insurance Conference of Georgia 2025

As the sun rises over Batumi, on the eastern coast of the Black Sea,  2025 edition of the International Insurance Conference of Georgia kicks off today, June 12, bringing together industry leaders, regulators, and innovators from 18 markets across the globe to discuss the future of the insurance sector.

This year's conference promises to be a landmark event, featuring a series of insightful panels, sessions, and networking opportunities designed to foster collaboration and drive advancements in the insurance landscape.

In a significant highlight, the Insurance Profile Georgia FY2024 will be officially launched during the conference. This comprehensive country report provides an in-depth analysis of the Georgian insurance market, including crucial statistical data for 2024 and exclusive interviews with key market professionals. Attendees will gain valuable insights into emerging trends, challenges, and opportunities that are shaping the future of insurance in Georgia and beyond.

Join us as we explore the themes of resilience and transformation in the insurance industry, setting the stage for a productive and forward-thinking dialogue that aims to elevate the standards of insurance practices in the region. Stay tuned for live updates and key takeaways from this pivotal event!

Prof. Karel Van HULLE, Catholic University Leuven, Belgium and Goethe University, Frankfurt, Germany

• Insurance is about mitigating and financing risks, which in our days, so complicated by a volatile geopolitical and economic environment, is crucial, makes life liveable.
• To accomplish their role, insurers need to be creative, open to new technologies and progress in all areas and, of course, they need to be financially stable

Jaba PUTKARADZE, Ministry of Finance, Georgia

• Georgian economy is fast increasing and one of the main drivers is tourism, for which Batumi is one of the most attractive destinations.
• Insurance is a very important part of our financial landscape. Property insurance is very important for supporting the fast and strong development in the construction sector; it gives more confidence to foreign and local investors, as well as to final users of these new real estate units
• We are striving to improve several aspects in the industry that still need work, but I trust in the industry’s reliability and wish for progress.

David ONOPRISHVILI, Chairman, Insurance State Supervision Service, Georgia

• With participants from 19 countries, this conference today is the proof of the strong interest there is for our market
• Economic growth in Georgia is mainly contributed by the real growth in trade, construction, information and communication, transportation and storage and other services, also characterized by increased labor productivity. The baseline, conservative forecast of economic growth in 2025 amounts to 6%, however it is expected that this projection will increase, reaching 9.3% by the end of the year.
• Inflation is expected to be above the target in 2025 and approach the target in 2026, with the average annual inflation in 2025 closed to 4%
• The Georgian insurance market doubled every five years. The average growth rate over the passed 10 years was 15%, indicating steady development. In fact, the insurance industry steadily follows and even surpasses Georgias’ strong overall economic growth rate
• Medical Insurance is still holding a leading position (42% of GWP), followed by Motor, both of which are among the most desired products for customers due to sensitivity to the frequency of losses
• Market concentration is still moderate, leaving space for improvement. Yet, there is a considerable gap between 3 largest companies and the following 2-3 also significantly large insurers. Further market participants are mainly concentrated in 1.5-4.5% range.
• Bank assurance products still hold large portion on the market. ISSSG is working with colleagues on the improvement of this situation
• Increasing capital requirements had a certain influence on the solvency ratio since 2021 due to growth premiums and claims, causing an increase in Solvency Margin, together with increasing minimum capital requirements. But insurers managed to adapt
• One new insurer was established in 2024 and acquired major part of the portfolio from another insurance company, this was the largest deal on the market, reaching up to GEL 25 million.
• Introduction of favorable taxation model, which supports reinvestment of profits without being taxed, also played a significant role in growing market capitalization.
• Our institution’s priorities, as supervising and regulatory body, are: efficient management and development of the Organization, further development of supervisory activities, promotion of consumer protection and financial education, support for the development of the insurance industry and enhancing cooperation

Devi KHECHINASHVILI, Chairman of the Board, Georgian Insurance Association, Georgia

• We strongly believe in the progress of this industry. However, while we saw high growth rates, it is important to note the insurance penetration is not increasing too much. We need to develop other lines of business
• Throughout the last years preparations went on to introduce mandatory MTPL insurance, a LoB that would help industry’s growth and also protect citizens. Yet, the entire process is delayed
• For the first time, private pensions received a fiscal support, which is driving growth in this sector also
• Adopting the Estonian model of taxation is producing visible positive effects in the insurers’ balance.
• A very good thing for the industry is that dialogue between the regulatory authority and the market players is very open and helps both parties to better align
• If all the reforms already prepared will actually happen, than insurance penetration would instantly increase from 1.3%to ~2%, which would be a strong progress, considering our development stage

Panel of discussions

Devi KHECHINASHVILI, Chairman, Georgian Insurance Association, Georgia

• We, as insurers, understand the importance and quality of the Solvency II regime. Preparations are ready, but I would recommend that the timing and pace of introducing Solvency II should be carefully approached, especially because the process bares some costs for the companies
• We should also prepare for introducing Solvency II and IFRS regulations by forming actuaries, professionals absolutely needed
• Retail property insurance is clearly underdeveloped, as in some respects we need to better adapt products to the real estate property specifics

Giorgi BARATASHVILI, General Director, Insurance Company ALDAGI, Georgia

• It is true that we had, as a market, a strong growth, but much of it came from price increases, so to really grow we need to develop new lines of business
• Adopting Solvency II is a rather complex process and we are aware that it will require effort, but we need to start, to preserve our competitivity and access to foreign markets
• Bancassurance plays an important role in property insurance, as most policies are linked and required by the existence of a mortgage. People lack initiative for insuring their properties, unless required by other factors.

Michael JAPARIDZE, CEO, ARDI Insurance, Georgia

• There are so many years since we are talking about the MTPL introduction; from our side, of the industry and regulatory body, we are ready; now is a matter of political will
• There is definitely much to do in promoting property insurance, not only for retails customers, but for businesses as well. It is a lot of growth space there, but a huge volume of work is required to educate people with regard to risks and actually push insurance takeup.

Sofia LEBANIDZE, Chairperson of the Supervisory Board, PSP Insurance, Georgia

• Introduction of MTPL insurance is needed not only for the growth of our business, but for the Geogian citizen’s protection. Of course the decision in a political one and probably depends much on the perceived welfare of the citizens
• Adopting Solvency II should not be a burden for the market, but a tool to increase market stability and credibility. However, we need to approach implementation carefully, especially considering that there are many small companies.
• Property and non-life insurance in general are the most profitable LoBs but unfortunately they have a small share in the market portfolio.

LIVE INTERVIEW:

Canan Sanem CENGİZ, Head of Strategy Development Department, SEDDK- Insurance and Private Pension Regulation and Supervision Agency, Türkiye

• Turkish market had to deal with many challenges in the last years – extremely high inflation, currency devaluation and, of course, insurance specific risks – major earthquakes, extreme weather.
• High inflation is challenging both for insurers and us, as supervisors, because we need first and foremost to protect customers
• The twin pressures of climate-related risks and natural catastrophes demanded stronger resilience from both the market and supervisor.
• However, especially thanks to the public private partnerships such as compulsory earthquake insurance system and state supported agricultural insurance system, most of these challenges were overcome.
• IPRSA completed and launched a very recent project in March 2025 which integrated living and terminated list of policies of citizens with the e-government platform. also we are performing several studies to identify the needs or the areas where digitalization is needed most.
• Digitalization is more than moving something from paper to electronic; all processes need to transform and be shaped according to another logic than the analog one

Prof. Karel Van HULLE, Catholic University Leuven, Belgium and Goethe University, Frankfurt, Germany

• Although the Solvency II 2020 Review brings many changes in the Solvency II Framework Directive, the basic principles of Solvency II remain unchanged; EIOPA in its Opinion on the Solvency II 2020 Review indicated clearly that it wanted evolution and no revolution
• The EC did not look at this review as a mere technocratic exercise:
  • The review should serve broader political objectives, in line with the Capital Markets Union Action Plan, the European Green Deal and the Sustainable Finance Strategy (see Commission Communication)
  • The review should upgrade the present micro-prudential framework with a macro-prudential part, including new powers for supervisory authorities in order to deal with systemic risk and a new regime for recovery and resolution and for insurance guarantee scheme
• Main changes in the Solvency II Directive refer to:
  • proportionality (some smaller companies are exempted from the scope of application of Solvency II, according to well defined criteria);
  • A new cathegory of insurers was defined: “small and non-complex undertakings and groups”- which may benefit from Solvency II regime exception, provided they fulfill certain criteria
  • Sustainability - Insurers must take into account the short, medium and long term horizon when assessing sustainability risks and have strategies, policies, processes and systems for the identification, measurement, management and monitoring of sustainability risks over the short, medium and long term
  • As part of their risk managment, insurers must develop and monitor the implementation of specific plans, quantifiable targets and processes to monitor and address the financial risks arising in the short, medium, and long term from sustainability factors, including those arising from the process of adjustment and transition trends towards the relevant MS and Union regulatory objectives and legal acts in relation to sustainability (transition plans)
  • Insurers must assess in their ORSA their material exposure to biodiversity related risks
• The sustainability and climate change related proposals are challenging for all parties concerned (undertakings as well as EIOPA)
• There is a need to coordinate the requirements on transition plans in SII with those required by the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD)
• The EC has proposed a number of simplifications on sustainability reporting but much remains to be decided
• Non-respect of the quantifiable targets in the transition plans can be sanctioned by supervisory authorities
• The amended Directive further enhances the powers of EIOPA but fails to make EIOPA a supervisory authority in its own right
• The implementation of the 2020 Review Directive will be challenging for all MS because of the large number of amendments

Manuela ZWEIMUELLER, Special Advisor to the Secretary General of the International Association of Insurance Supervisors (IAIS).

• The IAIS 2025-2029 Strategic Plan has been published; The 2025-2029 period follows an intensive standard setting phase; going forward there will be a shift to maintenance and refinement of these standards
• Focus shifts to: assessing key risks and trends in the global insurance sector; supporting effective supervisory practices; robust implementation assessment and support
• Throughout several successive crisis, the global insurance sector remained largely resilient; recent global insurance supervisory reforms have served the sector well
• The IAIS Holistic Framework is an integrated set of key elements aimed at assessing and mitigating systemic risk in the global insurance sector. The framework consists of three main elements (“pillars”): a global monitoring exercise, supervisory material/ measures, and an implementation assessment.
• The Holistic Framework supervisory material is integrated into ICPs and ComFrame and is designed to improve the assessment and mitigation of systemic risk in the insurance sector.
• There is a move away from the previous binary approach toward a proportionate application of an enhanced set of policy measures to a broader portion of the insurance sector.
• One of the thematic areas covered in the Holistic Framework supervisory material is “crisis management and planning”, which includes standards related to recovery and resolution.

Prof. Karel Van HULLE, Catholic University Leuven, Belgium and Goethe University, Frankfurt, Germany

• The IDD was adopted in 2016 and succeeds the Insurance Mediation Directive (IMD) adopted in 2002. IDD is a minimum harmonization directive. Contrary to its predecessor, which only dealt with insurance intermediaries, the IDD deals with all forms of insurance distribution including direct sales by insurance undertakings
• All (re)insurance distributors and employees of (re)insurance undertakings carrying out (re)insurance distribution must possess appropriate knowledge and ability in order to complete their tasks and perform their duties adequately (see the list of minimum professional knowledge and competence requirements in Annex 1, continuous education and proportionality)
• Insurance distributors must always act honestly, fairly and professionally in accordance with the best interest of their customers. Marketing communications must be fair, clear and not misleading.
• No arrangement by way of remuneration, sales targets or otherwise may be made that could provide an incentive to itself or its employees to recommend a particular insurance product to a customer when the insurance distributor could offer a different insurance product that would better meet the customer’s needs
• Second EIOPA Report on application of IDD showed several changes in the market, starting with a significant drop in the number of intermediaries registered as natural persons (increase of age, stricter professional requirements): from 1 MIO to 800.000. Also, there is a very large diversity in terms of national categories of insurance intermediaries
• Bancassurance continues to play an important role in the distribution of life insurance with other intermediaries such as agents remaining prevalent in the non-life sector
• The amount of online sales remains low in most MS but is increasing on a yearly basis
• The number of passporting intermediaries is decreasing slightly
• There is a mixed picture in terms of the level of professionalism and competence of insurance distributors
• Digitalisation and the growth of new distribution models continue to present risks, but also opportunities

Ekaterine TSERETELI, Deputy Chairperson, Insurance State Supervision Service, Georgia 

• Georgia is working hard to align its insurance regulations with EU and international standards. This is part of its commitment under the Association Agreement with the EU.
• One big focus has been Solvency II. Georgia is adopting its structure, which is built around three pillars: financial requirements, governance and risk management, and transparency. This effort has been supported by the EU, through a twinning project with Spain.
• The Insurance Distribution Directive, or IDD, is also on the agenda. New rules for insurance brokers have been drafted, including registration, ownership transparency, and professional standards. Agents, however, are still outside the regulatory scope for now.
• When it comes to pensions, Georgia passed a law on Voluntary Private Pensions in 2023 and issued 18 new by-laws. The ISSSG now supervises the 3rd pillar pension system.
• On motor insurance, two draft laws have been prepared – one for vehicles registered in Georgia and one for foreign vehicles. These are now combined into a single draft law.
• Financial reporting is moving in line with EU norms. Insurers switched from IFRS 4 to IFRS 17 in 2023, and new laws now cover group-level supervision for financial conglomerates.
• ESG is another big topic. Georgia is starting to include environmental, social, and governance standards in its insurance laws and has joined an interagency effort to align with the EU’s Corporate Sustainability Reporting Directive.
• Internationally, the ISSSG is very active. It’s a member of IAIS, IOPS, CESEE ISI, and more. It’s also working closely with the World Bank, the Asian Development Bank, and partners like Austria, Slovenia, and Armenia.
• Consumer protection is a major area of reform. The ISSSG participates in European initiatives and has been organizing public awareness events like World Consumer Rights Week.
• The anti-money laundering and counter-terrorism financing (AML/CTF) system has been strengthened over the years. Georgia’s insurance sector is now considered low-risk from an AML/CTF perspective.
• Last but not least, Georgia is building its actuarial profession from the ground up. Since 2018, it has offered formal actuarial training, and starting January 2025, insurers will be required to employ certified actuaries. New university-level courses are also being rolled out.

Alexander MEZURNISHVILI, Information Security Manager, Administrative Department, Insurance State Supervision Service, Georgia

• AI= Enabling machines to “THINK” andACT in ways that mimic humanabilities, such as learning, problem-solving, understanding, recognizingpatterns and making DECISIONS.
• Currently, 92% of Fortune 500 companies are using OpenAI’s technology; 94% of business executives believe that AI is a key to success in the future, while AI is already being used by 73% of marketing departments.
• Businesses adopting GenAI could achieve 15.7% cost savings.
• 70% of Gen Z have used generative AI tools.
• Just 3% of the skills for software engineering are resistant to AI.
• Key industries with the highest potentialfor automation include:
  • Banking (54%)
  • Insurance (48%)
  • Energy (43%)
  • Capital markets (40%)
  • Retail (34%)
  • Communications and media (33%)
• More than half of organizations believe cybersecurity is the biggest barrier to AIadoption and they didn’t adopt AI due to those reasons.
• There are three main vectors that can compromise AI: Jailbreak Attacks, Prompt Injection, Data poisoning/backdoor attack
• As market authority, we have adopted regulation to mitigate AI risks

Erik BARNA, Board Member @ Cluj - IT cluster, Romania

• By using AI, the time for settling a property clame (floods) may decrease frm about 0 days to a few hours
• There are technologies very helpful: Telematics,for personalized auto risk, Satellite imagery, to assess wildfire or flood exposure, Wearables to adjust health premiums based on real behavior
• AI helps a lot the risk assessment, by enriching d\received data with data gathered from other reliable sources (ex; meteo statistics, geological data, theft rate in the area etc.)
• What AI sees when assessing a damaged car: It highlights dent depth, damage zones, even estimates the repair cost
• AI won’t replace underwriters or adjusters. It augments their skills and capacity
• The best results come from hybrid models — human empathy + machine accuracy.
• AI in insurance is already delivering speed, precision, and transparency. The winners in our industry will be those who build trust on top of it.

Nikolay KOBZEV – IT and Operation Director, TBC Insurance, Georgia

• One of the biggest shifts for us has been our mobile app, which really brings convenience front and center. People can now access key insurance services anytime, from anywhere — and the adoption has been great.
• We’ve also introduced chatbots and self-service kiosks to take care of simple tasks, making things faster for customers and freeing up our team for more complex needs.
• In retail insurance, we've gone fully remote. Today, a client can get a casco insurance quote in less than two minutes — no paperwork, no manual data entry, everything flows through smart CRM tools and integrated platforms.
• Our telemedicine platform, RedMed, has been a game changer, especially during the pandemic. With over 200 doctors and more than 30 specialties, it’s now tightly connected to our health insurance services — and it helps offload about 25% of minor cases.
• And we’re starting to use AI for claims — for example, processing car damage images automatically. It’s still early days, but it’s a clear step toward faster, more accurate settlements.

Panel of discussions

Giorgi ZHURAVLIOV, Director of Customer Relationship Management Department, Insurance Company ALDAGI, Georgia

• People are spending more time in the digital world and this has an impact also in insurance. Being able to access and manage more data, helps us to understand better the customers and improve their journey in relation with us

Michael JAPARIDZE, CEO, ARDI Insurance, Georgia

• ARDI launched its first app several years ago and improved it since. The Covid experience was a threshold that all of us crossed in terms of types of communication. This is true also for the relation insurer-customers.
• AI brought the opportunity of voice communication, which is more empathic, customer friendly and engaging.

Alexander MEZURNISHVILI, Information Security Manager, Administrative Department, Insurance State Supervision Service, Georgia

Every new technology is challenging in risk management terms. In the AI case, technology is advancing at such a fast pace that it makes understanding risks  and trying to regulate in this area very difficult