Governance, Risk and Compliance - The Georgian Insurance Industry

Table of Contents
1 INTRODUCTION 6
1.1 What is this Report About? 6
1.2 Definitions 6
2 GOVERNANCE, RISK AND COMPLIANCE 8
2.1 Legislation Overview and Historical Evolution 9
2.2 Latest Changes in Regulation 10
2.3 Legislation and Market Practice by Type of Insurance 14
2.3.1 Life Insurance 17
2.3.2 Property Insurance 18
2.3.3 Motor Insurance 21
2.3.4 Liability insurance 22
2.3.5 Marine, aviation and transit insurance 22
2.3.6 Personal accident and health insurance 23
2.4 Compulsory Insurance 25
2.4.1 Liability insurance for ships with respect to oil pollution 25
2.4.2 Aviation liability insurance 26
2.4.3 Motor third-party liability insurance for owners of foreign motor vehicles entering the territory of Georgia 26
2.4.4 Compulsory civil liability insurance for mass gatherings 28
2.4.5 Compulsory insurance against risk of pollution resulting from activities related to hazardous substances 30
2.4.6 Professional liability insurance for auditors or audit firms 30
2.5 Supervision and Control 31
2.5.1 International Association of Insurance Supervisors 31
2.5.2 The Insurance State Supervision Service of Georgia 32
2.5.3 Georgian Insurance Association 32
2.6 Non-Admitted Insurance Regulations 34
2.6.1 Overview 34
2.6.2 Intermediaries 34
2.6.3 Market practices 35
2.6.4 Fines and Penalties 35
2.7 Company Registration and Operations 36
2.7.1 Type of insurance organization 37
2.7.2 Establishing a local company 37
2.7.3 Foreign ownership 39
2.7.4 Types of license 39
2.7.5 Capital requirements 40
2.7.6 Solvency margin 40
2.7.7 Reserve requirements 43
2.7.8 Investment regulations 43
2.7.9 Statutory return requirements 44
2.7.10 Fee structure 45
2.8 Taxation 46
2.8.1 Insurance premium or policy taxation 46
2.8.2 Withholding taxes on premium paid overseas 46
2.8.3 Corporate tax 46
2.8.4 VAT 47
2.8.5 Captives 47
2.9 Legal System 48
2.9.1 Introduction 48
2.9.2 Access to court 48
2.9.3 Alternative dispute resolution (ADR) 49
3 APPENDIX 50
3.1 Methodology 50
3.2 Contact GlobalData 50
3.3 About GlobalData 51
3.4 GlobalData's Services 52
3.5 Disclaimer 53

List of Tables
Table 1: Insurance Industry Definitions 6
Table 2: Georgia - Insurance Regulatory Framework Key Features 8
Table 3: Georgia - Life Insurance Regulatory Framework 17
Table 4: Georgia - Property Insurance Regulatory Framework 18
Table 5: Georgia - Motor Insurance Regulatory Framework 21
Table 6: Georgia - Liability Insurance Regulatory Framework 22
Table 7: Georgia - Premium Amount for Vehicles Registered in Foreign Country 27
Table 8: Georgia - Surcharge for the Financial Year 2018 46

List of Figures
Figure 1: Georgia - Insurance Supervision and Control at Various Levels 31
Figure 2: Georgia - Insurance Regulatory Frameworks for Company Registration and Operation 36