BAKU, Azerbaijan, June 12
By Tamilla Mammadova – Trend:
Only 10.4 percent of all cars registered in Georgia, are insured, Trend reports via the Georgia Competition Agency.
The agency said that from 2015 to 2019 the volume of the car insurance market increased from 46.6 million lari ($15.2 million) to 96.8 million lari ($31.7 million).
In 2015, 13 economic agents were active in the car insurance market, and in 2019 their number grew to 16, said the report.
Over the same period, the market concentration index (Herfindahl-Hirschman HHI index) fell from 2,441 to 1,679 units, which is an indicator of a moderately concentrated market.
The Herfindahl-Hirschman Index (HHI) is a commonly accepted measure of market concentration. It is calculated by squaring the market share of each firm competing in a market and then summing the resulting numbers.
"From 2015 through 2019, the number of cars registered in Georgia increased from 1.10 million to 1.37 million. The number of policies sold by insurance companies increased from 79,000 to 143,000," said the agency.
In 2015, the share of insured cars overall was 7.15 percent, while in 2019, this indicator grew to 10.4 percent, said the agency's report.
“The low share of insured cars (10.4 percent) indicates a high potential for market development. Also, the emergence of new insurance companies was recorded on the market,” said Irakli Lekvinadze, chairman of the Georgia Competition Agency.
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