Georgia advances in the strengthening of its Insurance Agency

According to the International Association of Insurance Supervisors (IAIS), the insurance field will be one of the sectors most affected by COVID19. Reports from the OECD and the Insurance Information Institute therefore suggest strengthening the sector in order to face large claims and recommend capitalisation for any influx of claims.

Being aware of this, the European Union Delegation in Tbilisi, the Georgian insurance agency and the General Directorate of Insurance and Pension Funds (DGSFP) of Spain have started a series of online activities with special training focused on following the recommendations of the European Insurance and Pension Authority (EIOPA) to train the Georgia Insuring State Overseeing Service (ISSSG) in risk analysis and the training of its officials with an emphasis on access to and continuity of insurance services. The activity lasted four weeks, each of which focused on training on a different subject: legislation, finance and training.

COVID19 has forced the implementation of a contingency plan for redesigning activities in such a way that they adjust to being held remotely without sacrificing quality. The tool chosen for this was Zoom as it is easy to access, has good connection quality, and enables close caption and “interpreter” users to be added.

The objective of continuing with these training courses online is to allow Georgia to continue making progress in bringing its insurance regulatory body closer to the Solvency II Directive. This European Union directive codifies and harmonises insurance regulation, specifically regarding the amount of capital that EU insurance companies must have in order to reduce the risk of insolvency.

The Spanish specialists focused the training in two fields: the analysis of the current Georgian Regulatory Framework in order to determine inconsistencies and gaps in relation to the regulations and standards of the European Union; and the adoption of an approach based on economic risks that offer insurance companies incentives to adequately measure and manage their risks.

With a duration of 21 months, the European Twinning project,  managed by FIIAPP, has been implemented since last November 2019 by the General Directorate for Insurance and Pension Funds (DGSFP), with the aim of strengthening the capacities of the Georgian State Insurance Supervision Service by harmonising the pertinent legal framework, as well as the functions and operations of the ISSSG, with EU regulations regarding Solvency II standards.