The FINANCIAL — French insurance broker company Gras Savoye entered the Georgian market and is expecting a large number of clients from first January.
The company delivers complete risk management, insurance brokerage, consulting services and claims administration, covering life and non life insurance in Georgia.
“Our strategy in Georgia will continue to focus on servicing our clients with the highest professional standards and to strengthen our strategic partnership with local insurance companies to deliver the best global insurance and risk management services here,” Patrick Lucas, Chairman and Chief Executive of Gras Savoye, told The FINANCIAL.
“In Georgia you have got an insurance market with about sixteen insurance companies. One aspect which is developing is health insurance. Insurance programmes for corporations are not well developed. The country needs a certain number of Georgian insurance companies to boost the flow of international investors. We believe that this is really the time to start activity in this country. What we will bring here depends on the existing needs.
If you look at Georgia you have got a position whereby there will be a lot of transits, a lot of logistic problems because of your position between different countries and two seas. Therefore, we have to offer some specific programme for carriers and for other businesses.
I expect there is a need for hotel insurance in Georgia as that industry is rapidly developing. Bank insurance is also another field we will focus on in Georgia. You have got highly specialized banks here which are pretty much able to develop a specific bank insurance programme. There is no limit to what we can bring. It really depends where we can identify the needs and the corporations which need our help.
Q. Is the Georgian market ready for liability insurance?
A. It will come very rapidly with the industrialization of the country. First of all there will be a number of foreign corporations which are going to invest in Georgia. They are all very familiar with insurance. All of them have got brokers. Very rapidly Georgian companies will have to face and compete with international corporations which are very familiar with insurance.
It can go very fast as long as brokers come here and do the job which is really to advise, consult, help, give a lot of information. Insurance schools will have to be established where insurance ideas are developed.
Q. In your opinion, how much time is needed to develop the Georgian insurance market?
A. The first thing is to have good professionals on the spot, because we are a service business. The first step is people in Georgia who are familiar with insurance and who are professionals to teach the clients and explain what insurance is in general. Time is needed to develop this sector here. It took fifteen years to develop the insurance market in Turkey. Our head office in France is always ready to send experts here as we do in certain countries. There are many professionals in this field in Georgia. We want to increase their number.
Q. What are your recommendations for Georgian insurance companies, clients and the overall market?
A. I was told that there are some confidence problems between clients and the insurance companies. My recommendation is not to worry about these problems. It is not specific to Georgia. People all over the world have the same problem. You have got the insurance market, we are a broker company and we represent the client’s interests. The best time the client can judge a broker is whenever a claim comes and it is being paid rapidly and honestly. This is the job of brokers, to make sure that the insurance company fulfils their side of the contract on time whenever a claim is made. The aim is to make sure that an insurance contract is drawn up to cover the reality of a client’s situation and all likely eventualities.
Q. You inform companies about political, economical and financial risks before entering the market. What about you yourself? Were you informed about these risks before entering Georgia?
A. I myself have some confidence in the development of Georgia. In different parts of the world activity is growing. Everyone can see that investments are coming to Georgia. It is the right time to invest in the country. I believe that politically the country is becoming stable. I do not see any reason why Georgia is not the right place for investors.
If you look at the world, there are always conflict zones. These conflicts should resolve themselves eventually. Sometimes when there is conflict it means the company cannot deliver its insurance products there. But conflict does not last forever. Gras Savoye operates in Egypt and Indonesia, both of which have been experiencing turmoil and are still facing ongoing conflict. However we have still been able to deliver insurance there.
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