According to Nino Kobakhidze, Chairwoman of the Supervisory Board of Global Benefits Georgia, despite annual price hikes for auto parts, the insurance company does not expect insurance rates to climb significantly.
In a conversation with Commersant, the last year sharp rise in prices in auto insurance and the insurance sector as a whole was caused by the financial portfolios of some market players.
"In the insurance sector, tariffs are directly linked to the volume of losses, that is, to the type of losses incurred by the insurance company in a year, as well as to how these losses were handled and managed.
Statistically, prices increase by about 3-7% each year, but insurance companies probably make individual decisions based on their portfolio.
We are not set to increase prices dramatically, but automatic price may increases by up to 5% for those cars whose maintenance costs have increased the most.
I can say the same about health insurance. Prices are increasing slightly each year mainly due to the increase in the cost of drugs. Consumption is also to be in mind as the year may be more saturated with viruses and various diseases.
“We do not expect radical tariff hikes either for health insurance or auto insurance,” the chairman of the supervisory board of Global Benefits Georgia notes.
