Demand for Microinsurance in Georgia: Quantitative Study Results

Publication Date: Apr 2005
Published by: MicroInsurance Centre
Document Type: Paper

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What are the market opportunities for microinsurance in Georgia?

This document presents the results of quantitative household survey to determine the market opportunities for microinsurance in Georgia. It puts forth objectives of the study and related findings from a survey of sample of 1000 households in eight regions in Georgia.

It states that the following confirm the need for microinsurance:

• High impact of risks on low-income households;
• Widespread prevalence of health, life and property risks.

The document presents the effective demand for microinsurance:

• Respondents showed willingness to buy health, life and property insurance in that order;
• However, most respondents rejected the insurance products due to:
  • Lack of product understanding;
  • Low level of trust in insurers;
  • Low disposable incomes and capacity to pay.

The document also gives market projections for the three microinsurance products:

• Short-term market estimated at 850,000 policies with twice as many in the medium-term for health insurance;
• Prospective short-term market for life insurance with 440,000 policies but limited medium term potential;
• Property insurance market estimated at 165,000 policies in the short-term with possible long term development.

Further, the document suggests market segments on the basis of:

• Demographic features such as geography, settlement type and income level;
• Financial behavior of households - reactive borrowers, informal savers, and knowledgeable formal savers.

The document concludes that well-designed microinsurance services, with the help of effective marketing strategies, can help reduce the vulnerability to risks among poor households.