On May 2, Georgia marked Insurance Day: 25 years ago on this date, the country's Law on Insurance was signed. To mark the occasion, the insurance broker GS (the representative of Willis Towers Watson in Georgia) explains insurance and insurance brokers in plain language.
Why buy insurance?
Sudden, unexpected events can seriously damage our quality of life. For many families, their home is their most important asset, and a fire or flood can make it uninhabitable. A road accident can write off a car, injure passengers or create liabilities to third parties. Events like these can be very expensive, and insurance helps soften the blow.
For companies, property damage often comes with business interruption, meaning lost income for a period of time. It is important for companies to assess and insure their risks properly, because an interruption like this can even bankrupt a business.
How does insurance work?
Insurance is a way of transferring risk. In exchange for a premium agreed in advance (the price you pay for the insurance), the insurer compensates you for the financial loss if the risk occurs.
An insurer collects premiums from many policyholders, while only a few of them actually suffer a loss. This keeps insurance affordable and ensures that compensation goes to exactly those people and companies that need financial support.
Insurance is not a luxury but a necessity. It protects us from large, unforeseen costs. We don't pay for insurance to make a gain; we pay so that we are protected from the financial consequences of the unexpected.
It's worth noting that people often assume insurance will pay for everything, and that is a misconception. It's important to understand which risks are covered and what exclusions a product has. Unrealistic expectations are often why policyholders end up dissatisfied.
Who are insurance brokers?
Insurance is a fairly complex product. Every contract has its own specific terms and exclusions and uses complicated language that policyholders find hard to understand. Companies often end up with a product or terms that don't fit their business, which means either paying too much or having the wrong cover, and that can lead to a claim being refused.
Brokers have extensive experience in insurance and technical knowledge of the products, which makes them effective intermediaries between clients and insurers. A broker's main job is to give the client as much information as possible about products and cover, and to work with them to design a product that fits their specific needs. Most importantly, when a claim arises the broker takes part in the settlement and helps make sure the client's interests are fully protected.
There are many types of insurance: health, motor, liability, property and more, and each covers different risks. Even for the same product, cover and exclusions can differ from one insurer to another.
Today 18 insurance companies are registered on the Georgian market. Brokers help companies choose the best terms available, tailored to them, and place their risks correctly. To do this, brokers analyze the client's specific profile as well as the insurers' offers (prices, exclusions, covered risks and more).
A broker is not an employee of an insurance company but an independent party who can assess the facts objectively.
Insurance broker GS
Insurance broker GS has been on the Georgian market since 2011 and today serves more than 200 corporate clients. The company leads the Georgian broking market in insurance. In 2021 it placed GEL 12,719,306 in premiums and earned GEL 1,280,767 in commission.
Insurance broker GS is the representative of Willis Towers Watson in Georgia. Willis Towers Watson is the world's third-largest broker, with more than 45,000 employees in over 140 countries. Its revenue is USD 9.4 billion, and it is listed on the New York Stock Exchange.
For more than 10 years, the company has served both local and global clients in Georgia to international standards. One of its main goals is to make insurance broking better known in Georgia. Many people don't know what the service involves or what its advantages are. In developed markets more than 90% of businesses use a broker, while in Georgia the figure is only 7%. The trend is upward, though, and we hope many more companies will see the benefits of working with a broker.
Link: https://www.marketer.ge/dazghveva-da-sadazghvevo-brokerebi
