Private Health Insurance in Georgia

Private health insurance plays a crucial role in healthcare and financial stability worldwide. In Georgia, private insurance is gaining increasing importance in the healthcare system, driven by a growing interest among the population in securing their health. In the first half of 2024, more than 735,000 people were covered by private health insurance in Georgia, indicating the development of the insurance market and the rising demand among the population.

In the first half of 2024, 19 insurance companies operated in Georgia’s insurance sector, with a total net profit of 67 million GEL. The largest share of this sector is held by private health insurance, reflecting the population’s growing demand for healthcare and their desire for security in case of health problems. Private insurance, although representing an additional expense for families, provides financial protection against unexpected medical costs for many households.

A large portion of the population receives health insurance from major companies such as “Imedi L,” “GPI Holding,” “Ardi,” “TBC Insurance,” and “PSP Insurance.” Specifically, “Imedi L” provides health insurance to over 206,000 people, making it the market leader by the number of insured individuals. “GPI Holding” is in second place with 171,000 customers, followed by “Ardi” with 78,000 customers. “TBC Insurance” covers 65,000 insured individuals, while “PSP Insurance” insures 54,000. The remaining 14 companies serve between 1,700 and 36,000 clients each.

Health insurance systems differ significantly across countries worldwide. In developed countries, health insurance is often mandatory and plays a key role in protecting the population. For example, in Germany and France, approximately 90% of the population has health insurance, allowing them access to comprehensive medical care. In these countries, health insurance systems are typically a mix of public and private insurance, jointly ensuring healthcare coverage for the population.

In the United States, the healthcare insurance system mainly relies on the private market. About 68% of the population has private insurance, which poses challenges for healthcare access, as high premium costs often limit affordability. In this regard, Georgia’s situation is somewhat similar, with insurance development depending on the population’s financial capabilities and the availability of insurance packages.

In European Union countries, the accessibility and coverage of health insurance are quite high. In the Netherlands, 100% of the population has health insurance, thanks to a mandatory insurance model implemented by the state. In Georgia, while private insurance coverage is actively growing, only part of the population benefits from such packages, underscoring the need for additional state support.

Despite the growth of the private insurance market in Georgia and the increasing number of people using its services, many challenges remain. One of the main challenges is the affordability of insurance packages—obtaining insurance is often difficult or out of reach for low-income households. Another significant issue is the quality of insurance services and the protection of the rights of the insured, which require continuous improvement.

The dominance of the top five companies in the private insurance sector indicates a lack of competition, ultimately affecting the quality and cost of the packages. Therefore, diversifying the market and attracting more companies is an important step towards making insurance services more accessible and of higher quality.

The development of private health insurance in Georgia is on the rise, and public interest in it is increasing. However, it is crucial for the healthcare system to ensure that the development of the insurance system continues in a way that makes it more accessible to broader segments of the population. This requires state support as well as increased competition in the private sector.

Based on global examples, improvements in Georgia’s health insurance system can be achieved through the introduction of a mandatory insurance model and the development of affordable packages for the population. Additionally, more informational campaigns are needed to educate the public on the importance and benefits of health insurance.

In the future, if Georgia’s private insurance market continues to grow and the state supports this process, it will help increase healthcare security for the population and, consequently, improve the overall health status of the country. At the same time, attracting more foreign investment and new companies could increase competition in the market, ultimately improving the quality of services and increasing the availability of insurance packages.