The FINANCIAL — One of the leading French insurance broker companies Gras Savoye has entered the Georgian Market. Representatives of the company hope their 100 years of experience and intellectual, financial resources will help local companies to develop better on the Georgian market.
This is its first branch in the region. Gras Savoye officials explain that by entering the Georgian market the company has made a strategically important point in the Caucasus region. After Georgia, Gras Savoye is going to enter Armenia and Azerbaijan as well.
Gras Savoye covers various insurance, including industrial risks, public liability, construction, transportation, motor fleet, financial and political risks and employee benefits insurance. It serves small, medium and large companies; banks and financial institutions, local government authorities; proprietors and collectors, self-employed, individuals, as well as the health care sector. Gras Savoye was founded in 1907 and has been the leading insurance broker in France since 1992.
Nino Kobakhidze, the Director of Gras Savoye Georgia, gave her first exclusive interview to The FINANCIAL, where she introduces to Georgia the company and its purpose here.
“Gras Savoye is one of the world’s top ten broker companies. This is a multi-brand company which incorporates every type of insurance: Industrial Risks, Public Liability, Construction, Transportation, Motor Fleet, Financial and Political Risks, Credit Contingency Insurance (cinema, exhibitions, museums, and events), Employee Benefits. We always find a solution, whatever the size of the client, large, small or medium-size companies, banks and financial institutions, local government authorities, self-employed, health sector, proprietors and collectors, individuals etc…”
Q. What was the reason behind the decision of Gras Savoye to enter the Georgian market?
A. To be convenient for clients, Gras Savoye has always favoured its geographical spread at a local level. Every year it tries to open at least one new office. The company is expanding in the context of the region. Today we have only one office here, on Murman Lebanidze Street. We are going to expand not only in Tbilisi, but in the regions as well. Revenue growth is another reason why Gras Savoye entered the market here, of course.
With forty offices in metropolitan France and in French overseas territories, Gras Savoye is the leading broking insurance regional network. With the partnership with Willis Group, Gras Savoye Willis today possesses one of the most powerful broking networks worldwide, present in more than 100 countries.
There is great interest in and sympathy for Georgia in France. Many French businesses are successfully operating here. Our goal is to help French and foreign business in general to operate in Georgia safely, with less risks. Tourism, energy, logistic and financial services are interesting sectors for French investors.
Gras Savoye is well enough experienced in creating new products and offering them to clients and insurance companies. We are going to do the same in Georgia, to bring new products here. For example, we will offer insurance companies health insurance product sales abroad. Also liability insurance, which means covering another party’s losses. When a person damages another’s car and the car is not insured, in this case this person compensates for the damage by their liability insurance. Another new product will be employee benefits. This is the social protection of employees and represents defence of the most important part in the exploitation budget of all enterprises. Gras Savoye proposes a complete methodology and pragmatic approach to confirm the social protection of employees at an optimal global cost.
Q. Gras Savoye carefully examined the Georgian market and the risk factors here. Please could you tell us the results and how the company is going to decrease these risk factors?
A. Entrance to the Georgian market was the initiative of the French side. They wanted to have a branch in this region. So they started negotiations with the Georgian side with Gras Savoye Turkey. Representatives from Turkey came here and met the Insurance Supervision Service of Georgia. The negotiations lasted for three months.
In the first stage Grass Savoye started to explore the market. Also, they were doing their risk assessment. Then they wrote the following analysis. They determined what type of new products would be useful for Georgia. In this process I offered them several schemes for developing insurance business in the country. We are going to cooperate with all of the insurance companies in Georgia.
Gras Savoye observed Georgian clients as well and decided to improve life, health and property insurance and to involve clients in the reinsurance process. We want to offer them a foreign insurance programme as well. Gras is offering its clients two types of service. One of them is to be an intermediary between client and insurance company and to create a proper expectation. The other thing is services, the whole technical process which the insurance company implements after the conclusion of the agreement.
Q. Who will be your staff that will execute all these changes?
A. The staff consists of employees with seven years of experience. I have nine years of experience in this sphere myself. Previously I worked for GPI Holding where I was Head of the Sales Department. As a promotion it was a very successful and attractive step for me to go on to work with Gras Savoye. We will bring together experienced specialists from other insurance companies in Georgia.
We are going to open a training centre for insurance managers. There will be professionals who will explain to the clients what will be paid or not paid. Which insurance company is suitable for them or whether it is necessary to be insured.
Q. Clients always complain about bad insurance service in Georgia. The confidence coefficient is low here. What is your strategy for such a situation?
A. Despite all the problems in the insurance business, this is the best time to enter the Georgian market. We will do our best to solve all the problems here. We are not mediators or a monitoring company. We just give local insurance companies incentives to improve the quality of their service. Our advantage is to offer such a kind of contract to the client that avoids bad service. We will be the guarantee for the clients.
The Georgian Government really tries to support insurance business. An insurance programme for people below the poverty line and an insurance product for employees and pensioners was a very positive step. This promotion is very necessary because without insurance the economic sector will not develop.
But the mistake was that the insurance process started without raising awareness first. People did not have the whole information about insurance at all. So it was perceived by people as a charitable foundation. They should have the right expectations of the insurance system. We decided not to be neutral in this situation but to stand by the client’s side; to protect the client’s interests.
At least six years are necessary for people to believe that insurance is really useful for them. Abroad, even 30 year contracts are made between clients and their insurance company. Every contract should be concluded through the mediation of a broker.
Q. Is it possible to insure property in the conflict zones of Georgia?
A. We consider the country’s conflict zones to be within Georgia’s territory. Although I do not think it would be possible to enter these regions at the moment, we want to provide the population in these zones with information about our company, our service and plans.
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