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Financial Plight of Local Insurance Companies

Published: September 3, 2013 | 11:27 am
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Up to GEL 24 million of debts – such is the difficult situation which insurance companies currently find themselves in. One of the heavily indebted companies is the IC Group. Spokesman Irakli Dokadze has told TV3 that the company is working on reducing the GEL 4 million of debts every day, and plans to clear them completely within 6 months.
Other insurance companies find themselves in a similar situation to the IC Group. Both Aldagi and GPI Holdings have debts, while an administrator has been appointed at Archimedes Global Georgia by the Insurance Supervision Service. According to the expert Levan Kalandadze, the overall situation within the insurance sector is uncertain and chaotic, which in itself could be problematic for the investors. He sees the solution to the problem in coordinated action between the insurance companies and the government.
The head of the Insurance Association Devi Khechinashvili has stated that the problems currently experienced by the insurance companies have caused confusion among the investors. According to him, the government could have started working on finding solutions to the problems considerably earlier.
The Health Ministry’s final decision on the issue of the insurance companies, and on whether the latter will be helped by a financial moratorium, will be announced before the end of the year.

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