BAKU, Azerbaijan, March 30
Tamilla Mammadova – Trend:
Passenger car penetration in Georgia is 304 on 1,000 per capita basis, Trend reports via the Georgian investment company Galt & Taggart.
"This number even falls to 234 if lapsed cars are excluded from calculations. Moreover, passenger car clearance per 1,000 inhabitants is also two times lower in Georgia than the EU average, showing room for demand growth," the report said.
Georgia’s excise tax structure (updated since 2017) stimulates imports of younger, eco-friendly cars, leading to increased demand on car insurance.
The share of insured road vehicles in total vehicle fleet increased to 7 percent as of 2019 from 4 percent in 2016.
Besides, car insurance is characterized with high loss rates compared to other insurance products, i.e. loss ratio for road transport insurance in Georgia stood at 73 percent in 2019, above all other insurance categories, except for health.
"Insurance companies are expected to benefit from the renewal of car fleet in medium-term, as by pooling a large enough number of insured cars together, they can reduce their risk exposure," the report said.
CO2 emissions account for 70 percent-80 percent of Greenhouse Gas (GHG) emissions in total, while 65 percent-70 percent of CO2 emissions come from automobiles. By joining the Paris agreement on climate change in 2017, Georgia aims to reduce its GHG emissions 15-25 percent by 2030.
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