It is interesting to see where the idea of insurance comes from?
The appearance of insurance is connected to those objective and subjective prerequisites which were related to the dangerous occasions and risks that caused huge physical and irreversible losses to the human beings. Historically, the birth of insurance came with the appearance of societies. However, it is difficult pinpoint to the exact date of the appearance of insurance. One thing is clear though that on the different levels of the development of societies, people’s urge to protect themselves from the risks were constantly increasing.
Because of the ongoing process of globalization and Georgia’s location, country’s economic development is very much linked with the stable and effective operation of the transport sectors.
Georgia is situated on the crossroad between Europe and Asia where goods with the strategic destinations are being transported. Freight transportation is always accompanied with the risks goods to be either lost or damaged. Insurance, in this case, is the most convenient and secure way to implement the transportation processes flawlessly and minimize the possible losses.
As the amount of transported goods is increased, time after time, more and more transportation companies in Georgia start to think about the importance of insuring freight transportation. The reason for this is that customers’ trust level rise towards those companies which offer insured transportations.
The logistics manager of the transportation company ‘Express Trans-shipment services’, Ana Kurashvili says: ‘there is a possibility of transportation risks while carrying freight. For us it is of utmost importance to decrease the financial loss caused by these risks as much as possible. In this matter, ‘TBC Insurance’ reimbursed up to 20 000 worth of loss in 2018.
In January-February period this year the amount of transported freight has increased by 100 000 tones compared to the same time period of the last year. Specifically, in January and February of 2019 transported freight amounted to 5 600 000 tones whereas, in the same time period of 2018 it was 5 500 000 tones.
‘While freight turnover increases, the insurance accidents, that naturally accompany working in this sphere, also grow. Road/transportation accidents, freight and supply damages or losses are just the small parts of the risks that damage transportation business. In order to avoid the financial loss caused by these risks we offer transportation companies to insure vehicles, freight and the ceasing of the forwarders’ responsibilities or activities.’ – explains the head of Small and Medium Sized Business Insurance at ‘TBC Insurance’.
According to the official data issued by the Insurance Supervision Service, in 2018, insurance companies collected 542.2 million GEL in bonus from the direct insurance activities. In 2017 this number was 441.4 million GEL. Freight insurance amounted to 8.87 million GEL in the whole sum which, compared to the previous year, is more by 2.68 million GEL. According to 2018 data, TBC Insurance covers 26% of the market by the amount of collected bonus in the land transportation vehicles’ insurance; the amount of bonus amounts to 22.42 million GEL.
The whole amount of bonus in the land transportation vehicles’ insurance, collected by the insurance companies in 2018, amounts to 85.77 million GEL. ‘TBC Insurance’ positions itself on the Georgian market as the most modern insurance company and a steady insurance partner for business. ‘TBC Insurance’ reimbursed 3.6 million GEL worth of loss to the transportation business.